Japan’s tax revenues hit a 6 year high in the FY2013 to March 2014 and came in at ¥47tn vs ¥43tn expected. They are forecast to come in at ¥50tn for FY 2014.
People involved with the budget details say that revenues are set to come in at the highest for 24 years in FY2015/16 at around ¥54.5tn
The budget is likely to be approved by Abe’s cabinet Jan 14 and the rise in revenues comes on the back of corporate profits in no small part to the fall in the yen.
In one aspect it’s great news for the business side of Japan and may help pave the way for Abe’s push to raise wages. While a massive amount of corporate Japan does business overseas it’s the domestic market where things need to improve. What is also surprising is that the big jump in expected revenues comes with the next sales tax hike being pushed back through 2016.
It’s a sign that although Japan is still struggling to break out of its stagnation there are some big positives around.
