On October 25, 2005, the Japanese Ministry of the Environment unveiled its plan on a new environmental tax, also known as a carbon tax, to curb global warming . The new tax is to be levied on carbon contained in various fossil fuels such as coal and oil. The ministry plans to introduce the tax system in January 2007. A tax of 2,400 yen (U.S.$21.2) will be levied per ton of carbon contained in fuels.

For example, the tax will be 1.58 yen (1.4 U.S. cents) per kilogram of coal, 1.52 yen (1.35 U.S. cents) per liter of gasoline, and 0.25 yen (0.22 U.S. cent) per kWh of electricity. Considering the high current price of crude oil, some fuels, including gasoline and diesel fuel, will be exempt from the tax for the time being.

The proposed tax will bring in about 370 billion yen (U.S.$3.27 billion) a year in new revenues, broken down as follows: 160 billion yen (U.S.$1.42 billion) from industry, 110 billion yen (U.S.$0.97 billion) from commercial business and 100 billion yen (U.S.$0.88 billion) from households. It is estimated that the additional burden on each household from the new taxes will be about 2,100 yen (U.S.$18.58) per year, or 180 yen (U.S.$1.59) per month.

The revenue from the new tax would be used for measures against global warming, for example, measures to manage and conserve forests, to promote the use of renewable energy, and to finance energy-saving equipment for residential houses and office buildings.


- Anti-Global Warming Tax of 3,400 Yen per Ton of Carbon Seen Necessary (Related JFS article)
http://www.japanfs.org/db/454-e

Posted: 2006/02/12 02:42:55 PM
Japanese version

TAG Energy , Global warming , Government , System/Law