The Bank of Japan announced on Friday that from January next year, according to book value, the annual sales scale of ETFs will increase from the current 330 billion yen to 860 billion yen. Following the acceleration of sales, it is estimated that the time required to complete the full sale will be shortened from 112 years to about 43 years. According to the law, the Bank of Japan is required to hand over surplus income to the government after deducting dividends and other expenses. Proceeds from selling ETFs can increase payment amounts and bring additional non-tax revenue to the government. Senior economist Taro Kimura estimates that after sales speed up, the Bank of Japan can add about 800 billion yen in revenue every year. This potential additional revenue will help Sanae Takaichi raise funds for her policies when preparing next year's budget. Her proposed policy promises include a two-year food excise tax relief, a 14-year growth investment plan, and increased defense spending. Additional funds surrendered by the Bank of Japan may also be used to fund the special economic security account that the current administration plans to set up. Kazumasa Ishii, wealth management strategist at UBS Sumitomo Mitsui Trust and a former cabinet office official, said, “Compared to filling large temporary income gaps caused by policies such as consumption tax relief, the Bank of Japan's funds are more suitable for supporting year-end projects, such as special economic security accounts.”
Zhitongcaijing · 2d ago
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The Bank of Japan announced on Friday that from January next year, according to book value, the annual sales scale of ETFs will increase from the current 330 billion yen to 860 billion yen. Following the acceleration of sales, it is estimated that the time required to complete the full sale will be shortened from 112 years to about 43 years. According to the law, the Bank of Japan is required to hand over surplus income to the government after deducting dividends and other expenses. Proceeds from selling ETFs can increase payment amounts and bring additional non-tax revenue to the government. Senior economist Taro Kimura estimates that after sales speed up, the Bank of Japan can add about 800 billion yen in revenue every year. This potential additional revenue will help Sanae Takaichi raise funds for her policies when preparing next year's budget. Her proposed policy promises include a two-year food excise tax relief, a 14-year growth investment plan, and increased defense spending. Additional funds surrendered by the Bank of Japan may also be used to fund the special economic security account that the current administration plans to set up. Kazumasa Ishii, wealth management strategist at UBS Sumitomo Mitsui Trust and a former cabinet office official, said, “Compared to filling large temporary income gaps caused by policies such as consumption tax relief, the Bank of Japan's funds are more suitable for supporting year-end projects, such as special economic security accounts.”
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