Friday, 17th December 2010
In General Japan News,
Japan plans high fossil fuel tax increase
Japan is set to increase the tax on fossil fuel use to help reduce carbon emissions, according to the ministry of economy, trade and industry.
Akihiro Ohata confirmed that from October there will be a gradual increase in the tax in order to reduce Japan's use of oil, coal and gas, reports Dow Jones.
"We have decided, after deep discussions, to phase in the fossil fuel tax increase," said Mr Ohata.
The rates are to be increased over a five-year period by 37.25 per cent on oil, 72.2 per cent on liquefied natural gas and 72.2 per cent for liquid petroleum gas. Coal will see the largest rise with a 95.7 per cent increase.
Masataka Shimizu, president of the Tokyo Electric Power Co, which supplies power to the whole of the city, responded to the news by comfirming that it is unlikely to change the company's long-term plans but consumers are likely to see a rise in prices to compensate for the tax hike.
Written by Mark Smith