Carbon Tax To Be Introduced in FY2005

Japan's Environment Minister Shunichi Suzuki stated at a press conference after a cabinet meeting on February 14, 2003, that the ministry will start detailed discussions about introducing a carbon tax on greenhouse gas emissions in fiscal 2005.

The Ministry of the Environment will finish reviewing the progress of the measures to prevent global warming by 2004 and carry on developing a concrete plan, anticipating the introduction of a tax to tackle the problem as soon as possible in 2005, if one appears to be necessary. The ministry will present a framework by around the summer of 2003 and promote public understanding for about tax, including its aims and expected effects, aware that the Government Tax Commission will also start examining an environment tax.

Under the Kyoto Protocol, Japan must reduce its greenhouse gas emissions to six percent below 1990 levels. In fact, however, the emissions had already increased eight percent by 2000, making a 14-percent reduction necessary now to return to 1990 levels. This realization forms the basis for debate over an environment tax, but the business community is showing strong opposition to such a tax.

An environment tax, or a tax against global warming, would be imposed on carbon dioxide emissions. While the ministry has been considering levying the tax on fossil fuels, the business community tends to believe that all citizens should share the cost. The ministry will commission an expert committee to discuss the drawbacks and advantages of each system, including the ease of applying the tax and its ability to increase of awareness and activities to prevent global warming.



Posted: 2003/04/13 12:39:34 PM
Japanese version