Japan likely reaped record tax revenues last year, sources say

TOKYO, July 2 : Japan’s tax revenue likely exceeded 84 trillion yen ($516.92 billion) in fiscal 2025 to hit a record for the sixth straight year, two government sources said on Thursday.

The increase may help Prime Minister Sanae Takaichi’s administration reduce its reliance on fresh debt issuance to fund big spending plans.

The estimated tax revenue for the year that ended in March, first reported by public broadcaster NHK, is about 4 trillion yen higher than the government’s forecast made in November.

The increase in revenue is due to higher tax receipts from households and firms, thanks to rising wages and robust corporate profits, the sources said.

($1 = 162.5000 yen)