Japan Press Weekly

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2012 March 21 - 27 [FINANCE]

Japan is 2nd lowest in tax revenues among OECD

Japan ranked the second worst at 15.9% of GDP in tax revenues among OECD member countries in 2009 as a result of continued losses in the state coffers caused by generous tax breaks for large corporations and large asset holders.

Japan’s main source of income is far below the average ratio of 24.6% of the 34 OECD-member countries. Mexico held the lowest rank at 14.5% in 2009, which Japan held the previous year at 17.4%.

In 1990, Japan’s tax revenues were 21.3% of GDP. Over the last two decades, Japan has kept moving down due to cuts in corporate taxes and in the maximum rate for income taxes.