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Tax planned on fuel

By 3p Contributor
Japan intends to introduce an environment tax next year to limit fuel use by businesses and individuals and reduce emissions. Gasoline, light oil and kerosene will be taxed at the production stage, while gas and electricity levies will be on amounts used.

Most companies would pay 2400 yen ($22, £12) per ton of carbon produced and households would pay on average 3000 yen a year. Tax exemptions or lower rates may apply to high users such as iron, steel and transport businesses.

The government aims to use the revenue to fund projects protecting the environment, including alternative energy promotion, and would encourage consumers to invest in equipment to conserve energy.

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