Japan's FY 2020 Tax Revenue Seen to Be Lower by 8 T. Yen
Tokyo, Dec. 11 (Jiji Press)--The Japanese government's general-account tax revenue in fiscal 2020, which ends next March, is expected to be around 8 trillion yen lower than the initially estimated 63.5 trillion yen, it was learned Friday.
Corporate tax revenue is predicted to fall far below the initial estimate as businesses struggle amid the novel coronavirus crisis.
It is all but certain that the government will issue over 100 trillion yen of new bonds for the first time ever in fiscal 2020, in order to make up for the revenue shortfall and cover ballooning expenses for measures against the novel coronavirus. The move would further worsen the country's finances.
The government's tax revenue in fiscal 2019 stood at 58.4 trillion yen, down 1.9 trillion yen from the preceding fiscal year.
The government initially expected to earn record-high tax revenue this fiscal year as the effects of the consumption tax rate hike in October 2019 would apply throughout the year. Now, however, it expects a second consecutive year of decline.
[Copyright The Jiji Press, Ltd.]