Japan’s defence buildup: the 2022 security documents and their financing act

Three security documents decided by the National Security Council and the Cabinet[1][4]

Policy documents adopted by the government; the five-year plan applies from fiscal 2023, its financing act still has to pass the Diet.

National Security Strategy, National Defense Strategy and Defense Buildup Program adopted[1][2]

The Strategy decides that Japan will acquire counterstrike capabilities, which it describes as a minimum necessary self-defence measure that does not change the exclusively defence-oriented policy, preemptive strikes remaining impermissible.

Financing bill tabled in the Diet by the Cabinet (bill no. 1 of the 211th session)[7]

Bill presented in the House of Representatives plenary by Finance Minister Shun’ichi Suzuki[10][13]

Questions from the parties follow; Prime Minister Kishida states that from fiscal 2027 about ¥4 trillion a year will be needed to sustain the reinforced defence.

House of Representatives passes the bill[7]

Liberal Democratic Party and Komeito for; Constitutional Democratic Party, Nippon Ishin no Kai, Democratic Party for the People, Japanese Communist Party, Yushi no Kai and Reiwa Shinsengumi against.

House of Councillors passes the bill (standing vote)[8][9]

Financing act promulgated and in force[5][7]

Act No. 69 of 2023, in force from its promulgation: non-tax revenue and the Defence Capability Enhancement Fund.

Act No. 69 of 2023 promulgated[7][5]

Tax amendment adds a defence special corporate tax and a special tobacco tax rate to the financing act[5]

Promulgated amendment to the income tax act and other acts (Act No. 13 of 2025): 4% on corporate tax, for business years starting on or after 1 April 2026, after a ¥5 million deduction; tobacco tax of ¥8,302 per 1,000 cigarettes from 1 April 2027.

Policy speech: Prime Minister Takaichi brings the 2% level forward to fiscal 2025 and announces a revision of the three documents[15]

« Together with a supplementary budget », the measures for the « 2% of GDP level » will be taken within the current fiscal year, and work starts with the aim of revising the three documents « within next year ».

2% of GDP level reached in fiscal 2025, according to the government[18][16][19]

With the fiscal 2025 supplementary budget enacted on 16 December 2025, the government counts about ¥11 trillion of defence and related spending in fiscal 2025, i.e. the 2% level two years ahead of the 2027 target.

Fiscal 2025 supplementary budget enacted: ¥1.1 trillion of security spending[18][17][19]

Including ¥502.1 billion of Defense Buildup Program spending and ¥345.1 billion for the realignment of U.S. forces. The next day, the Prime Minister states that, together with the initial budget, the « 2% of GDP level » is reached.

Fiscal 2026 tax reform outline: a 1% defence income surtax from 2027[20]

Decided by the Cabinet, together with a cut of the reconstruction special income tax from 2.1% to 1.1%. Expected yield of the three defence tax measures: ¥1.337 trillion in a normal year, according to the Ministry of Finance.

Act No. 12 of 2026 promulgated: the defence special income tax is written into law[5][6]

1% of income tax from 2027; the reconstruction special income tax falls to 1.1% and is extended to 2047.

First defence surtax applies: the defence special corporate tax[5]

In force with the tax chapters added in 2025 and 2026: 4% defence special corporate tax for business years starting on or after 1 April 2026; the 1% income surtax follows from 2027.

Defence special corporate tax applies to business years starting from this date[5]

Revision of the three security documents under way[23][24][25]

An expert panel convened by the Prime Minister has met five times between 27 April and 27 October 2026. At its first meeting, the Finance Minister said the documents are to be revised « by the end of this year »; no official adoption date has been set. The fiscal 2027 budget request guidelines leave the budget consequences of the revision to the budget-drafting process.