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Estimated Effect on the National Tax Revenue of Tax Reform in 1999

 

(billion yen)

Items

Full Year
Effect

FY 1999

1. Permanent Tax Reductions

 

 

(1) Permanent Tax Reductions

   

  [1] Personal Income Tax

   

     - Reduction in the Highest Marginal Tax Rate

- 264 - 273

     - Proportional Tax Reductions

- 2,646 - 3,043

     - Measures for Children and Education

- 285 - 285

  [2] Reduction of Corporation Tax Rate

- 1,694 - 1,061

       (Sub Total of [1][2])

- 4,889 - 4,662

(2) Adjustment of Tobacco Tax Rate between central and local governments

- 134 - 124

(Total)

- 5,023 - 4,786

2. Housing- and Land- Related Tax Measures

   

(1) Introduction of Tax Credit for Housing Loans System

- 1,231 - 4

(2) Preferential Treatment of License and Registration Tax

- 81 - 81

(Total)

- 1,312 - 85

3. Tax Reduction for Investment in Plant and Equipment

- 447 - 337

4.Tax Measures Related to Financial Markets

   

(1) Abolision of Securities Transaction Tax

- 168 - 168

(2) Abolision of Bourse Tax

- 20 - 20

(3) Measures to promote international use of Yen

- 5 - 11

(Total)

- 193 - 199

5. Other Measures

   

(1) Reduction in inheritance tax for succession of business

- 77 - 40

(2) Suspention to impose Special corporation tax

- 200 - 200

(3) others

- 48 0

(Total)

- 325 - 240

Total

- 7,300 - 5,647
Note: 1. Reductions in Aviation Fuel Tax in the special account are estimated to be ¥ 0.4 billion (full year effect) and ¥ 0.3 billion (FY1999).
2. If the effect of deducting corporate enterprise tax in the next year is included, the reduction in tax revenue is estimated ¥ billion to be ¥1533 billion (full year effect).

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