So far, Japan’s policy on bitcoin has been quite lenient, apart from a couple of taxes imposed on people purchasing bitcoin with the help of digital currency exchanges. However, recent reports indicate that Japan’s government has just decided to finally end the 8% consumption tax, imposed on these types of bitcoin transactions, thus coming as a relief to the digital currency community in the Asian country.
While initially announced in a Japanese publication, the change will come after an agreement set by the Financial Agency and the Japanese Financial Ministry, after long talks, which should come to fruition by the end of the year, or in early spring. Reports indicate that a tax panel will also join the discussions, and will hopefully be in favour of the plan to end these taxes.
It’s important to keep in mind the fact that Japan represents the only country from the seven majorly industrialized regions which had the legal frameworks to tax bitcoin set in place. To put things better into perspective, earlier this year, after successive pressure carried out by the digital currency community in the region, when a Liberal Democratic Party official asked the Japanese Finance Minister whether they could: “Can’t you consider not imposing consumption tax on bitcoins in line with the international trend?”, during a Parliament session earlier this year.
Following the question, it seems like the nation’s Finance Minister defended their idea by stating that other countries such as Australia also tax the digital currency. This has happened, indeed, yet the country has recently decided to lift all taxes surrounding the process of purchasing bitcoin.
Once adopted, this new ruling will surely increase and encourage the process of bitcoin adoption throughout the country, as citizens will no longer be forced to pay the 8% consumption tax, when using exchanges to purchase bitcoin. Not only this, but thanks to the great increase of digital currency-accepting stores in the country, usage of bitcoin and altcoins is also set to grow.
Additionally, there are also several companies planning to facilitate the process of paying bills at cheaper rates, with the help of bitcoin, starting next month. Exchanges are also happy with the change, as this will significantly decrease administrative work and beaurocracy in the market.
Based on everything that has been outlined so far, what do you personally think about the Japanese Government cutting down the taxes on bitcoin purchases through exchanges? Let us know your thoughts in the comment section below.