Photo/Illutration The Finance Ministry building in Tokyo’s Chiyoda Ward in 2020 (Asahi Shimbun file photo)

Tax revenue in Japan in fiscal 2020 that ended in March 2021 jumped by 2.3801 trillion yen ($21.5 billion) from the previous fiscal year to a record 60.8216 trillion yen, fueled by a consumption tax hike, the Finance Ministry announced on July 5.

For the first time, revenue from the consumption tax overtook that collected for the income tax and marked the most among the various taxes after the rate was increased to 10 percent in October 2019.

Revenues from the corporate tax and the income tax also exceeded those of the previous fiscal year even as the nation grappled with the novel coronavirus pandemic.

Tax revenue marked the highest in two years since it reached 60.3564 trillion yen in fiscal 2018.

Tax revenue increased by nearly 5.7 trillion yen from the 55.125 trillion yen forecast by the government at the end of 2020 as a result of downward revision. 

By taxes, the consumption tax brought in 2.6187 trillion yen more than the previous fiscal year to a record 20.9714 trillion yen, accounting for 34.5 percent of the total tax revenue.

Revenue from the corporate tax increased by 437.5 billion yen to 11.2346 trillion yen, more than 3 trillion yen higher than the projection at the end of last year.

As global economies are recovering, it is believed that manufacturing and other businesses are recovering faster than expected.

Revenue from income taxes increased by 19.1 billion yen from the previous fiscal year to 19.1898 trillion yen.

The increase is believed to have occurred partly because workers’ incomes did not fall as expected during the pandemic and incomes increased due to rising stock prices.

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