Tax to counter global warming to be introduced in FY 2011

Monday 06th December, 07:12 AM JST

TOKYO —

The Government Tax Commission has decided to introduce an environmental tax to counter global warming in fiscal 2011, informed sources said Sunday. It is considering raising petroleum and coal taxes to boost the revenue from them by up to 50% and allocating the amount for enhancing energy conservation, according to the sources.

The commission is apparently aiming at curtailing the consumption of fossil fuels, which emit carbon dioxide, by raising the prices of coal and natural gas, the sources said. The ruling Democratic Party of Japan will propose introducing the environmental tax in the fiscal year from next April in its taxation reform plan to be presented to the government on Monday.