Japan experiences tax revenue shortfall

H1 corporate tax revenues in red 1st time since fiscal 1960

“TOKYO, Nov 4 (Reuters) – Japanese Finance Minister Hirohisa Fujii reiterated on Wednesday that the government would issue extra bonds to respond to a sharp fall in tax revenues in the year to next March.  The Ministry of Finance has said Japan’s corporate tax revenues fell into the red in April-September, the first half of the fiscal year, for the first time since fiscal 1960/61, due to the amount of tax refunds topping tax revenues as many companies fell into the red. Fujii had already said the government could issue more bonds for the fiscal year to next March as tax revenues are likely to fall 6 trillion yen ($66 billion) or more below an initial estimate of 46 trillion yen.”

Also, Japan’s trailing GDP number was revised down from 4.8% to 1.3%.

In theory some movement in the interest rate on new government debt should be seen.


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