A tax on major banks that the Tokyo Metropolitan Government introduced in fiscal 2000 will bring in revenues of 102.9 billion yen, 38.7 billion yen less than initially expected, metro government officials said Wednesday.
The revenues fell short of expectations of 141.6 billion yen because of the weak performance at major banks.
Only seven banks saw profits in fiscal 2000, which ended March 31, while 24 fell into the red due to losses stemming from the disposal of nonperforming loans and declining stock prices.
The metro government imposed the 2 percent to 3 percent tax on the gross operating profits of banks, or profit before expenses such as the costs for bad-loan disposals are deducted.
The debt-ridden metro government expects the tax, which will be imposed on banks doing business in Tokyo that have 5 trillion yen or more in funds, for five years, to bring in about 110 billion yen a year.
The system is controversial as even banks in the red in must pay taxes.
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