The Japanese government may start raising taxes as early as April 2026 to fund the increased defense spending, according to a government proposal obtained by NTV.

The government plans to secure more than 1 trillion yen by fiscal 2027 through increases in corporate, income and cigarette taxes, but the government has not finalized a timeline for the plan.

According to the proposal obtained by NTV, the government is set to add 4 percent to the current corporate tax from April 2026 as a defense special tax. The special tax will also affect income tax with a surtax of 1 percent.

The government also plans to increase tobacco tax by 0.5yen per cigarette each year for three years starting April 2027.

The ruling party must first discuss with the opposition Democratic Party For the People to finalize the plan.