A sign for the National Tax Agency is seen in this file photo. (Mainichi/Kazuo Motohashi)

       TOKYO (Kyodo) -- Japan's tax revenue in the year that ended in March is likely to have reached a record level of around 60.8 trillion yen ($550 billion) on the back of solid corporate performances despite the coronavirus pandemic, government sources said Wednesday.

       The unexpected rise from 58.44 trillion yen in fiscal 2019 came as corporate tax revenue rose on brisk earnings by some manufacturers, and a consumption tax rate hike to 10 percent from 8 percent in October 2019 lifted overall revenue, the sources said. The previous record was 60.36 trillion yen in fiscal 2018.

       The fiscal 2020 tax revenue was estimated at 55.13 trillion yen in December last year, taking into account sluggish business performances and personal spending due to the spread of coronavirus infections.

       But Japan's exports have expanded since the start of this year in tandem with the recovery of major economies such as the United States and China, boosting demand for Japanese products such as cars and auto parts.

       According to Finance Ministry data, Japanese corporate pretax profits in the January-March period logged their first year-on-year gain in eight quarters, up 26.0 percent from a year earlier, with the manufacturing sector posting a 63.2 percent rise.

       Even so, the government tax revenue is too small to cover the nation's ballooning budget amid growing social security spending due to its rapidly graying population.

       Japan's parliament has enacted a record 106.61 trillion yen budget for fiscal 2021, setting a record for the ninth consecutive year and prompting the government to issue a huge amount of bonds.

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