The major emphasis of the Japanese tax system is on direct taxation, with approximately 60 percent of total tax revenue coming from direct taxes and remaining 40 percent from indirect taxes. The principle direct tax is the national income tax, which can be classified into two categories. The first category being the progressive individual income tax defined in the Income Tax Law, and the second being the corporate income tax defined in the Corporation Tax Law. A 3- percent consumption tax was introduced in 1989, with the rate being raised to 5 percent in 1997. This consumption tax has increased in overall weight of indirect taxes in recent years. The general framework for local tax matters is established by the Local Tax Law. Local taxes include a prefectural enterprise tax, prefectural and municipal resident taxes, and a municipal fixed asset tax. However the national government collects considerably more tax revenue than do local municipalities so it must support local government activities through tax allocations from the national treasury. One notable difference between the Japanese tax system and that of other advanced nations is that in Japan there tends to be less of a disparity between the percentage of revenues derived from corporate taxes and the percentage of revenues from individual taxes. Tax rate: The tax rate is determined based on the taxable income. Tax rates on individual income in Japan were previously divided into 15 progressive brackets. However, a second tax reform in 1989 simplified this system. Today individual income is taxed in 5 brackets of 10, 20, 30, 40 and 50 percent. Tax types: Taxes in Japan are paid on income, property and consumption on the national, prefectural and municipal levels. Income tax, enterprise tax, property tax, consumption tax and vehicle related taxes. Income tax in Japan is based on a self-assessment system in combination with a withholding tax system.