Japan’s FY 2020 Local Tax Revenue Drops 700 B. Yen
Newsfrom JapanPolitics Lifestyle
Tokyo, July 14 (Jiji Press)--Local tax revenue in Japan in fiscal 2020, which ended in March this year, is believed to have fallen 700 billion yen from the previous year to 41.7 trillion yen, informed sources said Wednesday.
It is the first time in four years that Japan’s local tax revenue has decreased from the year before. The fall reflected a massive slump in corporate tax revenue stemming from the novel coronavirus pandemic’s effects on corporate earnings.
Corporate tax revenue, or combined revenue from corporate enterprise tax and corporate inhabitant tax, is believed to have shrunk 1.5 trillion yen to 7.4 trillion yen, according to the sources. The effects of the coronavirus crisis were most visible in companies which closed their books in March 2020.
Meanwhile, local consumption tax revenue is seen growing 600 billion yen to 5.4 trillion yen, thanks to the consumption tax rate hike in October 2019.
Individual inhabitant tax revenue is believed to have increased 200 billion yen to 13.4 trillion yen on the back of higher salary income, the sources said. Fixed asset tax revenue is seen rising 100 billion yen to 9.3 trillion yen, reflecting strong demand for new housing and renovations.
[Copyright The Jiji Press, Ltd.]