Corporate tax revenue, hit by the global economic crisis, fell to its lowest level in nearly five decades in the first six months of fiscal 2009, the Finance Ministry said Monday.
The overall figure amounted to minus ¥1.31 trillion for the April-September period, turning negative for the first time since officials began compiling comparable data in fiscal 1960, the ministry said.
Initial revenue projections were for ¥10.54 trillion in the black, raising the possibility the government will have to issue additional debt-covering bonds in the months ahead.
Finance Minister Hirohisa Fujii said last month that amid a sharp fall in tax revenue, the issuance of Japanese government bonds would most likely rise from the ¥44 trillion initially projected in fiscal 2009.
During the fiscal first half, tax rebates to companies with weaker than expected earnings results totaled ¥2.68 trillion.
Companies normally pay taxes based on their projections before they finalize their annual earnings figures. The ministry reimburses the difference in taxes when a company's earnings fall short of the projection.
Overall general account tax revenue in the first half of fiscal 2009 totaled ¥10.09 trillion, down 24.4 percent from a year earlier.
A cut in overtime pay and summer bonuses led personal income tax revenue to contract 14.7 percent to ¥5.55 trillion.
Overall tax revenue, initially estimated at around ¥46 trillion, could fall below ¥40 trillion for the first time since fiscal 1985 if the economy fails to show dramatic improvement.
To cover the possible shortfall of about ¥6 trillion, new issuance of government bonds could top ¥50 trillion for the first time ever.
For next year, Prime Minister Yukio Hatoyama has said he will try not to issue government bonds worth more than the ¥44 trillion, the target set by the previous administration.
In September alone, corporate tax refunds topped revenue by ¥25.93 billion and personal income tax dropped 13.4 percent from a year earlier to ¥763.73 billion.