Estimated Effect on the National Tax Revenue of Tax Reform in 1998
Items |
FY 1998(1) |
Full Year |
1. Temporary Income Tax Reduction |
-4,240 |
-14,030 |
| 2. Corporation Income Tax | ||
| [1] Reducing Tax Rates | -8,190 |
(Note 2) |
| [2] Broadening the Tax Base | 4,930 |
|
(Total) |
-3,260 |
|
3. Finance-Related Tax |
|
|
| [1] Reducing Tax Rates of Securities Transaction Tax | -1,910 |
-1,910 |
| [2] Reducing Tax Rates of Bourse Tax | -200 |
-200 |
(Total) |
-2,110 |
-2,110 |
4. Land Taxation |
|
|
| [1] Suspension of Land Value Tax | -1,340 |
-1,340 |
| [2] Others | -140 |
-290 |
(Total) |
-1,480 |
-1,630 |
5. Others |
|
|
| [1] Increase of Personal Allowances, etc. | -660 |
-660 |
| [2] Special Taxation Measures concerning enterprises | 170 |
200 |
| [3] others | -180 |
-100 |
(Total) |
-670 |
-560 |
Total (2+3+4+5) |
-7,520 |
-- |
Total in General Account (1+2+3+4+5) |
-11,760 |
-- |
Introduction of Special Tabacco Tax |
1,202 |
2,600 |
| (Notes) | 1. | "FY 1998" represents the effect on the fiscal 1998 year national revenue. "Full Year Effect" represents the effect on one fiscal year national revenue if all reforms are in force in the fiscal year. |
| 2. | If the rate of economic growth is 1.75% - 3.5%, the average estimated effect of Corporation Income Tax Reform from 1998 - 2003 when the reforms are phased in is as bellow. |
| [1] Reducing Tax Rates | -13,800 |
- |
-14,420 |
|
| [2] Broadening the Tax Base | 11,220 |
- |
12,280 |
|
(Total) |
-2,580 |
- |
-2,140 |