Japan's FY 2021 tax revenue hits record 67.04 trillion yen

Japan's tax revenue in fiscal 2021 hit 67.04 trillion yen ($495 billion), up 10.2 percent from the previous year and setting a record for the second straight year, as the economy continues on its recovery track from the coronavirus pandemic, the Finance Ministry said Tuesday.

Consumption tax was the largest contributor to overall tax revenue during the year through March, raking in 21.89 trillion yen, up 4.4 percent from the previous year.

Corporate tax revenue also grew 21.4 percent to 13.64 trillion yen, as a result of solid business earnings amid the easing of restrictions related to COVID-19, according to the ministry.

Income tax revenue rose 11.4 percent to 21.38 trillion yen.

The increase in revenue of the three core taxes drove the total figure to eclipse the previous high of 60.82 trillion yen recorded in fiscal 2020, data suggested.

The total tax revenue for the reporting year surpassed the government's forecast by slightly over 3 trillion yen.

However, the figure is still not enough to cover the nation's ballooning budget amid growing social security spending as its population grays rapidly.

The parliament has enacted a record 107.60 trillion yen budget for fiscal 2022 to finance measures against the coronavirus as well as rising social security and national defense costs, setting a record for the 10th consecutive year.

© Kyodo News