NAGOYA (Kyodo) -- The city of Toyota, where Toyota Motor Corp. is headquartered, is expecting over five times more corporate tax income in fiscal 2014 than the previous year, thanks to the leading Japanese carmaker's robust performance.
The city office in central Japan's Aichi Prefecture expects 26.2 billion yen in local tax from resident companies in the fiscal year starting April, against 4.5 billion yen in fiscal 2013, it said in a draft budget revealed Friday.
The highest-ever increase is attributed to Toyota Motor's record profit forecast for fiscal 2013 and the improved performances of its business partners.
The city's corporate resident tax income reached 44.2 billion yen in fiscal 2008, immediately before the financial crisis hit the global auto industry, but has stayed low in the last several years.
"We did not expect their performance to rebound so rapidly," a city official said.
The city plans to spend its "unexpected revenue" partly on funds to prepare for a sudden fall of corporate resident tax income in the future.
Of the city's planned 168.5 billion yen budget, 108.5 billion yen is projected to come from taxation of residents and resident companies.