A modern tax system was established in Japan approximately 20 years after
the Meiji Restoration (1868), when Japan emerged from feudalism. Until that time the Japanese tax system had relied mainly upon land taxes, which repre- sented more than 80% of all tax collected. Rapid development of a capitalism economy in the Meiji period brought about broad changes in the tax system. An income tax system was introduced in 1887, making Japan one of the first countries to adopt an income tax system with modern features. However, since economic development was still at an early stage, income tax played only a minor role in total tax revenue (1.5% in 1888); the number of people paying income tax was only 118,600 out of a total population of 39 million, while land tax still accounted for more than half of the aggregate tax revenue (53.8% in 1888)
A modern tax system was established in Japan approximately 20 years afterthe Meiji Restoration (1868), when Japan emerged from feudalism. Until that time the Japanese tax system had relied mainly upon land taxes, which repre- sented more than 80% of all tax collected. Rapid development of a capitalism economy in the Meiji period brought about broad changes in the tax system. An income tax system was introduced in 1887, making Japan one of the first countries to adopt an income tax system with modern features. However, since economic development was still at an early stage, income tax played only a minor role in total tax revenue (1.5% in 1888); the number of people paying income tax was only 118,600 out of a total population of 39 million, while land tax still accounted for more than half of the aggregate tax revenue (53.8% in 1888)
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