DOGE Japan Version Officially Released, Ready to Change Crypto Tax and Subsidy Rules?

Jakarta, Pintu News – The Japanese government recently held a ministerial meeting to advance the domestic Department of Government Efficiency initiative. The main goal of the initiative is to reform special tax measures and subsidies that have been in place for decades. Read the full information here!

Establishment of Special Reform Office

The meeting, attended by Finance Minister Katayama, Chief Cabinet Secretary Kihara, Minister of Internal Affairs and Communications Hayashi, and Minister of Administrative Reform Matsumoto, focused on evaluating special tax measures that have been in place for many years.

In November 2025, the Cabinet Secretariat established the Office for the Review of Special Tax Measures and Subsidies with around 30 staff members. The unit will evaluate tax incentives, many of which were designed to boost corporate competitiveness but are now questioned for their effectiveness and lack of proper tracking.

Finance Minister Katayama emphasized the importance of public engagement in this process. He recognized high public expectations and announced plans to collect feedback from citizens on the subsidies under review before the end of the year.

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Taking Inspiration from US Models

Japan’s DOGE efforts were inspired by the US Government’s Department of Efficiency, led by entrepreneur Elon Musk under the Trump administration. In the US, Musk’s approach to bureaucratic reform was highly visible, even using a chainsaw as a symbol to “cut” inefficiencies. However, after Musk left office in May 2025, the DOGE experiment came to an end, failing to achieve its $1 trillion reduction goal despite several budget cuts.

Japanese officials are looking for a more measured process. The plan is for thorough and substantive reform, not theatrical gestures. The government must balance the need for fiscal resources with the recent approval of a large supplementary budget, raising tensions between reform promises and financial realities.

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Overcoming Revenue Challenges

The potential elimination of temporary taxes, including the gasoline tax, could subtract about 1.5 trillion yen from annual revenue. This makes it imperative to seek alternative funding by deeply reviewing tax and subsidy spending. The government will analyze which programs should be cut, restructured, or replaced to achieve greater impact.

Major reforms of the initiative are expected to begin in fiscal year 2027. This timeline allows for careful evaluation of hundreds of tax and subsidy measures, each with unique industry and stakeholder linkages. Officials plan to use objective metrics, moving away from subjective assessments that have allowed inefficient programs to continue.

Conclusion

Japan’s method of encouraging public input rather than a top-down approach stands out for its uniqueness. By inviting citizens’ opinions on subsidies that should be reviewed, the government seeks greater transparency. This effort can build understanding and support for difficult decisions.

FAQ

What are the main objectives of the DOGE initiative launched by the Japanese government?

The main goal of the DOGE initiative is to reform special tax measures and subsidies that have existed for decades in Japan.

Who was involved in the ministerial meeting for the DOGE initiative in Japan?

The meeting was attended by Finance Minister Katayama, Chief Cabinet Secretary Kihara, Minister of Internal Affairs and Communications Hayashi, and Minister of Administrative Reform Matsumoto.

How was the Japanese DOGE inspired by the US model?

Japan’s DOGE is inspired by the US Government’s Department of Efficiency led by Elon Musk, which takes a dramatic approach to cutting inefficiencies.

What are the consequences of the temporary tax abolition in Japan?

The temporary elimination of taxes, such as the gasoline tax, could reduce annual revenue by about 1.5 trillion yen, forcing the government to seek alternative sources of funding.

When is the major reform of the DOGE initiative in Japan expected to start?

Major reforms of the initiative are expected to begin in fiscal year 2027, after a careful evaluation of various tax and subsidy measures.

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Reference

• BeInCrypto. Japan’s Doge-Inspired Tax Reform. Accessed on December 3, 2025
• Featured image: Generated by AI