Prefectures are projecting revenues from two key local corporate taxes at ¥3.90 trillion in their initial budgets for fiscal 2009, down 41.8 percent from their initial budgets for fiscal 2008.
The decline in revenues from the corporate income and enterprise taxes stems from weak corporate earnings as a result of the global economic slowdown, the Internal Affairs and Communications Ministry said Monday.
Thirty-one prefectures are assuming revenue declines of more than 40 percent in fiscal 2009, led by a drop of 64.6 percent in Aichi, home of Toyota Motor Corp.
The 47 prefectural governments are projecting total tax revenues in their fiscal 2009 budgets at ¥17.43 trillion, down 11.7 percent from their fiscal 2008 budgets.