Japan Hits Record Tax Revenue, Surplus Debated

Japan's tax revenue for fiscal 2024 reached a record high of approximately 75.2 trillion yen ($522–$524 billion), surpassing government estimates by 1.6–1.8 trillion yen and marking the fifth consecutive year of growth. The surplus, driven by strong corporate profits, increased consumption tax revenues, and a boost from international tourism, allowed the government to cancel planned deficit-covering bond issuance. However, income tax revenue declined due to recent tax cuts, and the surplus remains insufficient to cover the ruling Liberal Democratic Party's pledge of 20,000-yen cash handouts to every resident ahead of the July 20 Upper House election. The use of the surplus has become a central issue in the election, with debates over whether to cut taxes or provide direct cash benefits. The Finance Ministry is expected to officially announce the fiscal 2024 tax revenue figures soon. Projections for fiscal 2025 anticipate further growth, with revenue expected to reach 77.8 trillion yen.