The national tax levy will rise by ¥360 billion on an annual basis should the government's tax proposal for the next fiscal year take effect, a Finance Ministry estimate showed Friday.
Tax revenue is likely to rise because the revision includes the elimination of tax cuts on stock dividends and a reduction in tax breaks on real estate transactions, according to the ministry's statement.
The Cabinet on Friday approved the tax revision proposal for the fiscal year starting April 1. It will be debated during the regular Diet session starting later this month.
The government cut the tax on stock dividends to 10 percent from 20 percent in 2003 to encourage investment and shore up the stock market. It proposed returning to 20 percent for annual dividend income exceeding ¥1 million from the year starting in April 2009.