Year’s End Reflections: What We Carry Forward
As we enter December—the final, bustling stretch of the year—it’s hard not to marvel at how quickly 2025 has passed. For many in Japan, the arrival of the New Year also marks the moment we “grow a year older＝歳を取る” a tradition shared in various forms across Asia, including Korea, China, and Vietnam (according to ChatGPT).
But how should we think about aging? It is often cast in a negative light. Yet when we pause to look back—at what we pursued, pondered, struggled with, and ultimately learned—it becomes clear that no year is without meaning. Every added year represents another layer of experience. Even missteps can become the raw material for growth in the year ahead. Rather than letting the past twelve months blur into a quick “it went by so fast,” this season may be a good moment to take stock of your own path.
A Long-Awaited Update—With Mixed Feelings
Japan’s commuter-allowance tax rules were revised for the first time in nearly a decade, dating back to 2014. Raising the non-taxable threshold is a welcome move, but the benefits feel limited. For example, the category covering most workers—those commuting between 2 km and 10 km—saw no increase at all.
A quick look at online data shows that regular gasoline prices have climbed from about ¥120 per liter to roughly ¥170 over the last ten years—an increase of around 40% (excluding the provisional tax). And then there’s the administrative headache: applying the change retroactively to April adds unnecessary complexity for employers already juggling year-end tasks.
Another Frustration: The Year-End Adjustment Maze
Japan’s year-end tax adjustment system brings its own set of challenges. Deductions for spouses or dependents are determined by their annual income—figures that only become final at the end of December. Many companies are told to “submit estimated numbers in November,” only to receive correction notices from the tax office the following summer when actual figures differ.
In theory, the system is designed to allow the sweeping annual tax reconciliation to be completed quickly so the full filing season can begin in the New Year. But with some 60 million employees nationwide affected, it may be time for a bold redesign—one that recognizes the burden placed on employers who strive to calculate everything correctly.
A Record-Size Supplementary Budget—But Is It Urgent?
As mentioned last month, the Takaichi⾼市 administration’s supplementary budget＝補正予算 was formally approved by the Cabinet on November 28. At ¥18.3 trillion, it is the largest since the pandemic. The package prioritizes inflation relief, defense reinforcement, and—of particular relevance to Ehime Prefecture—the revitalization of the shipbuilding industry. All worthy goals.
Yet the question remains: Are these measures truly urgent enough to warrant a supplementary budget? Financial markets have raised concerns, and it’s important to remember that with holding-tax reforms and supplementary budgets ultimately draw from the same fiscal well. The government owes the public a clear explanation—both of the intentions behind these policies and of their consequences.
From a year full of turbulence, may the coming one offer renewed optimism.
Wishing you a bright and hopeful New Year.
よいお年をお迎えください！
