Japan to raise environment tax in stages
Thursday 16th December, 05:13 AM JST
TOKYO —
Japan will raise the environment tax to be introduced next October in stages through April 2015 in order to fight global warming, the government’s tax panel said Wednesday.
A set of policy recommendations for fiscal 2011 which the Tax Commission is finalizing for approval Thursday by Prime Minister Naoto Kan’s administration also includes a two-year extension of a tax break for capital gains from stock investment and a temporary cut in aircraft fuel tax.
The government is slated to also approve its basic guidelines for drafting within this month the state budget for the year starting in April in Thursday’s cabinet meeting.
On a possible consumption tax hike, the panel will make no specific proposal and only go along the government policy, approved Tuesday, to work it out as part of comprehensive tax reforms to be compiled by mid-2011, according to its discussions opened to the public over the Internet.
The commission, headed by Finance Minister Yoshihiko Noda, said in its final draft presented to the day’s meeting that it will propose raising the planned environment tax rates, to be imposed on fossil fuels in accordance to their carbon dioxide emissions, in stages by April 2015.
As a result, prices for crude oil and petroleum products, for example, would rise from 2,040 yen to 2,800 yen per liter in April 2015.
The panel has estimated revenues from the tax would be around 240 billion yen a year. The government is expected to use the money to help develop energy efficient, environment-friendly technologies.
|
Teacher Albert