Japan is the only one among seven major industrialized nations to tax bitcoin. There is an increasing number of critics within the country arguing that the consumption tax hurts Japan’s competitiveness, writes Toshihisa Kinouchi of Nikkei .
While Japan currently ponders deeming bitcoin and virtual currencies as currencies similar to conventional fiat currencies , there is another debate surrounding bitcoin that is being talked among regulators and politicians.
Tsukasa Akimoto, a member of the Liberal Democratic Party — the ruling party in the country — put forth a question toward Finance Minister Taro Aso, asking: “Can’t you consider not imposing consumption tax on bitcoins in line with the international trend?”
Defending Japan’s bitcoin taxation, Aso responded by stating “Japan is not alone [in taxing bitcoins]”. Aso pointed to countries including Australia who tax virtual currencies like Bitcoin. The discussion occurred during a lower house budget committee meeting on February 5.
However, there is a growing voice of disapproval toward the practice of taxing the cryptocurrency and other virtual currencies. Dealers and Consumers Get a Bad Bitcoin Deal
As things stand, individuals purchasing bitcoin with yen through Japanese exchanges are subject to an 8% consumption tax rate, similar to the tax rate imposed on physical goods. Such a high tax rate is bound to put off Japanese nationals and bitcoin adopters from indulging virtual currencies. For dealers, it’s even worse.
Bitcoin companies and exchanges outside Japan are able to sell bitcoins to Japanese buyers at a cheaper rate, despite the consumption tax levied at customs when an asset is coming into Japanese shores. While imported goods are routinely subjected to tax collected at customs, imported bitcoins do not have an overbearing regulator that keeps track of the influx of bitcoins purchased outside the country.
Yuzo Kano, head of the Japan Authority of Digital Assets, the […]
