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.
