Last year's local tax revenue reached a record high of approximately 43.3 trillion yen due to an increase in local corporate tax paid to local governments against the backdrop of strong corporate profits.
The preliminary figures for local tax revenues for the prefectures and municipalities of the 3rd year of Reiwa last year compiled by the Ministry of Internal Affairs and Communications were 43,296.6 billion yen in total, including the transfer tax collected by the national government and distributed to local governments.
This was more than 1.6 trillion yen from the previous year, an increase of 3.9%, a record high.
Of the local tax revenue, the total tax revenue of corporate enterprise tax and corporate inhabitant tax paid by companies to local governments was 8,226.6 billion yen due to the increase in corporate profits, which is more than 820 billion yen from the previous year, or 11.2. %increased.
In addition, the local consumption tax was 6,170.3 billion yen, which is more than 740 billion yen, or 13.8%, due to the recovery of consumption that had been declining due to the influence of the new corona and the rise in import prices due to the depreciation of the yen. increased.
According to the Ministry of Internal Affairs and Communications, "While some industries were hit by the new corona, there were also industries that were performing well due to increased demand, and overall corporate profits were strong, which led to an increase in tax revenue."