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Japan's tax revenue for fiscal 2022 is expected to hit a record 70 trillion yen (around $500 billion), but many businesses are still struggling with the upheaval caused by the coronavirus pandemic. 

Japan's $500bn puzzle: Why are tax revenues surging amid slow growth?

Fiscal 2022 collection likely to hit record as 'K-shaped' recovery deepens

MASAYA KATO, Nikkei staff writer | Japan

TOKYO -- While the Japanese economy continues to struggle with lingering fallout from the COVID-19 pandemic, the country is raking in record tax revenues -- a phenomenon that has left many observers scratching their heads.

The nation's tax revenue topped 60 trillion yen ($430 billion) in fiscal 2020 despite an economic contraction and is expected to reach 70 trillion yen in the 2022 financial year. A country's tax revenue typically moves in tandem with its nominal growth, with Japan following that pattern before the onset of the coronavirus pandemic in early 2020.

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