Japanese Tax Revenue Expected to Reach Record 84 Trillion Yen

Jakarta - Japan's tax revenue is expected to set a record again. Amid inflation and wage increases, the country's cash is likely to exceed 84 trillion yen in fiscal year 2025.

Kyodo News, quoted Thursday, July 2, reported that Japan's tax revenue for the fiscal year ending March is expected to be a record high for the sixth consecutive year. The value exceeds 84 trillion yen or about 517 billion US dollars. Assuming a rate of Rp110 per yen, the value is equivalent to around Rp9.240 trillion.

This figure is up around 9 trillion yen from the fiscal year 2024 realization of 75.23 trillion yen. The increase is mainly supported by strong corporate profits, so that corporate tax revenue also increases.

Inflation and wage increases also boosted consumption tax and income tax receipts.

The latest estimate exceeds the government's previous estimate of 80.7 trillion yen. Japan's Ministry of Finance is expected to announce the official figure as early as Friday.

This tax revenue record comes as the Japanese government is considering cutting consumption taxes on food and beverages. The tariff is planned to fall from 8 percent to 1 percent starting April 2027.

Income tax receipts also recovered after falling in fiscal year 2024. The decline occurred due to temporary tax cuts during the tenure of former Prime Minister Fumio Kishida.

Meanwhile, consumption tax revenue remains supported by inflation and household spending which is still solid.