Where Japan’s Government Gets its Money
Like all governments they get their money from taxes, too. But, taxes make up just over half (53.5%) of the revenue for Japan.
Income tax makes up 16%.
Corporation taxes make up 14%.
Consumption (sales) tax makes up 12.4%
Gasoline tax makes up 2.6%
Liquor tax makes up 2.0%
Inheritance tax makes up 1.5%
Tobacco tax makes up 1.0%
Customs and Motor vehicle taxes make up about 1.8% combined.
Stamp Revenue makes up 1.4%. I never quite understood this but surely had to pay my share of it. Whenever a deal is signed, there is a stamp (looks like a postage stamp) that must be bought and placed on the document.)
So, where does Japan get the rest of the money to run its government:
Answer: Government bonds – make up almost 42% of the annual revenue in Japan.
Government bonds are the number one source of revenue for Japan’s government making up about 42% of the budget income.
The total income – a whopping 82,100,829,000,000 yen.
There was talk about getting rid of the last two zeros in the Japanese currency and making 100 yen equal to 1 yen and not charging anything less than that.
Looks to me like it is about time to do so.
What do you think?
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June 27, 2006
I think they should raise liquor tax on imported booze. Help the local brewing industry, and raise some pennies. erm, yen.
Oh and the stamp duty is because you can’t give a government employee money. Kind of an anti-bribe device.
October 2, 2006
So…
The Japanese Government is running itself into a hole too eh? Sounds very familiar, the US Government spends in a similar way, bonds, loans, or whatever. Then pays about a fifth in interest every year.
I’m sure however the Japanese are much better at keeping such things under control.