Tokyo (Reuters) – Japan’s government has changed its estimates of national tax revenue for the last fiscal year, which ended in March. This is because a weak yen and a recovery from the pandemic helped big companies make more money, according to a report that Reuters saw on Monday.
The total tax revenue for fiscal year 2021 was expected to be 67.0 trillion yen ($496.15 billion), which would be a record for the second year in a row. The sales tax, the corporate tax, and the income tax were all raised from their original estimates.
When tax revenues are higher than expected, lawmakers often call for more spending to help a weak economic recovery, since the extra money won’t be used.
The fiscal law says that half of the budget left over from the previous fiscal year can be used for an extra budget that may be made later in the current fiscal year.
($1 = 135.0400 yen)
