Shortage of local allocation tax of 480 billion yen due to national tax reduction "Corona impact also" Minister of Internal Affairs and Communications July 7 17:56
In response to the government's tax revenue falling below the government's estimate last year, Minister of Internal Affairs and Communications Takaichi revealed that 480 billion yen of the local allocation tax granted to local governments will be short of resources, and from next year He said he would make an effort not to affect local financial management.
The local allocation tax for supporting the finance of local governments is financed by national taxes such as corporate tax and income tax, and the amount of allocation is determined every year based on the estimated tax revenue for that year.
At the press conference after the Cabinet meeting, Minister of Internal Affairs and Communications Takaichi received a total of 16 trillion local allocation tax granted to each local government last year, as the country's tax revenue fell below the government's estimate by 1.7 trillion yen last year. It was revealed that 480 billion yen out of 300 billion yen will be short of financial resources.
If the local allocation tax becomes short of financial resources, it will be adjusted based on the amount granted after the year following the year in which it became clear.
Minister Takaichi said, "I will discuss this in consultation with the Ministry of Finance, but due to the impact of the new coronavirus, the situation will be even tougher than usual every year toward the next fiscal year. I will make an effort."