Japan set to levy tax to counter global warming in 2011

Japan, the world's third largest economy, will introduce an environmental tax from next year to boost revenue and promote energy conservation steps to counter global warming.

The Government Tax Commission has decided to introduce an environmental tax to counter global warming in fiscal 2011, Kyodo news agency reported, quoting informed sources as saying.

The Commission is considering raising petroleum and coal taxes to boost the revenue from them by up to 50 per cent and allocating the amount for enhancing energy conservation, the report said.

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 today, the report said.

Japan has inadequate natural resources to support its growing economy and large population. Although many kinds of minerals are extracted throughout the country, vital mineral resources, including fossil fuels have to be imported.