[/floatr]Asahi: Fukuda: Road tax rates will be revived
Prime Minister Yasuo Fukuda made it clear Saturday that higher gasoline and road-related tax rates, set to expire today, would be revived in spite of stiff opposition to such a move. In an interview with reporters on Saturday, Fukuda said, "The current tax rates must be maintained." He cited a revenue shortfall for local governments and a negative environmental impact if the additional taxes were abolished. Fukuda has promised to turn road-specific taxes into general revenue from fiscal 2009. But his statement Saturday indicated that the higher tax rates--which are called provisional but have been in place for decades--will not be lowered even in or after fiscal 2009. Fukuda declined to say if the government would force a bill to revive the higher tax rates through the Diet by a second vote in the Lower House, which is dominated by the LDP and New Komeito. He instead said that "there are things that should be done" before taking such a hard-line approach. However, Cabinet Secretary Nobutaka Machimura, for the first time among government leaders, said Saturday that the government may resort to a second vote...more...
Japan Probe cites a report on how some gas stations in Japan hid the new lower prices to avoid starting a price war.
