• Kyodo News


Tax revenues for fiscal 2008 posted a record year-on-year decline of 13.2 percent to ¥44.267 trillion, due partly to sharp falls in corporate tax revenues amid the global recession, the Finance Ministry said.

Total revenues fell some ¥9.3 trillion short of the initial projection, it said.

Money coming in from corporate taxes plunged 32.1 percent to ¥10.01 trillion as corporate earnings deteriorated.

Personal income tax revenues declined 6.8 percent to ¥14.99 trillion due to pay cuts. The consumption tax brought in ¥9.97 trillion, down 2.9 percent.

The total was ¥2.16 trillion less than a revised projection under the second supplementary budget for the fiscal year. Nontax revenues were ¥374.3 billion less than the government’s projection.

The combined revenue shortfall of ¥2.536 trillion was not offset by ¥1.818 trillion in unspent outlays, bringing about a net revenue shortfall of ¥718 billion.

The government will cover the net revenue shortfall with a transfer from the National Debt Consolidation Fund. In the fiscal year that starts next April, it will have to raise funds through deficit-covering bond issues and other means to match the transfer.

In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.