TOKYO: The Japanese government’s general-account tax revenue exceeded 71 trillion yen for the first time in fiscal 2022, which ended last March, people familiar with the matter said Wednesday.

Tax revenue topped the previous year’s 67,037.9 billion yen, hitting a record high for the third straight year, the people said.

Corporate tax revenue apparently grew due to an earnings recovery from the COVID-19 pandemic, while higher prices and strong personal consumption are believed to have pushed up consumption tax revenue. Income tax revenue was also strong thanks to higher wages.

The Finance Ministry is expected to release fiscal 2022 tax revenue data in early July.

The government recently suggested that it will not raise taxes to finance higher defense spending at least until 2025.

Strong tax revenue is expected to increase the ruling coalition’s pressure on the government to postpone the tax increase further.

JIJI Press