JAPAN’S new Prime Minister, Fumio Kishida, said yesterday he won’t seek to change the country’s taxes on capital gains and dividends for now as he intends to pursue other steps for better wealth distribution, such as raising wages of medical workers.

Kishida, who has vowed to rectify wealth disparities, had previously said reviewing those taxes would be an option in addressing income gaps.

The prime minister’s new stance indicates his concern about jitters in the stock market caused by the prospects of higher tax levies.

Kishida took the top job in the world’s third-largest economy last week, replacing Yoshihide Suga, who had seen his support undermined by surging COVID-19 infections.

“I have no plan to touch the financial income tax for the time being. ... There are many other things to tackle first,” Kishida told a news program on commercial broadcaster Fuji Television Network.

“Misunderstanding is spreading that I may do it soon. That will give unnecessary worry to people concerned, if not dispelled firmly.”

Some investors have expressed concern that the new prime minister may press ahead with capital gains tax hikes, signaling a turnaround from investor friendly economic policies pursued by Japan’s longest-serving prime minister, Shinzo Abe, from 2013 to 2020.

Some analysts had called for raising Japan’s tax levied on investment income from the current 20 percent to raise more from the rich and fund steps to support low-income households.

Others were skeptical about the impact such tax hikes may have on correcting wealth disparities.(SD-Agencies)