Tokyo government panel report calls for 4 new taxes

Copyright 2000 The Yomiuri Shimbun
Article date: November 25, 2000
 

The Tokyo metropolitan government should impose four new taxes--on the use of expressways by large diesel vehicles, on the industrial waste disposal, on newly installed pachinko machines and on hotel accommodations--according to a final report to be submitted by a government panel next Thursday, sources said.

While the industries and businesses to be affected are likely to be vocal in their opposition, Tokyo Gov. 0 Ishihara plans to start drafting an ordinance so that the new taxes can go into effect starting with the next fiscal year, sources said.

When a set of laws to promote decentralization went into effect last April, local governments are no longer required to obtain approval from the Home Affairs Ministry before introducing taxes that they themselves create. Thus, the proposal has a high probability of becoming a reality.

Ishihara set up the panel to study Tokyo's new local taxes in June, saying, "Tokyo's policies will influence the tax-study panels of both the (central) government and political parties."

Ishihara took the initiative on getting Tokyo's bank tax introduced last April, giving rise to considerable nationwide debate.

The final report on the new taxes is due before December when the central government tax-study panel submits a report proposing tax-system revisions.

The final report consists of six chapters dealing with themes such as tax and fiscal reforms to promote decentralization, future plans for the tax system and the types of non-statutory taxes--that is, original local taxes--that would be suitable for Tokyo.

The four new taxes were proposed in the section on original local taxes.

The specific purpose of the proposed tax on expressway use by large diesel vehicles is to support Tokyo's environmental policies. The drivers of such vehicles will have to pay 600 yen in tax in addition to the toll--currently 1,400 yen--at the tollbooth.

All revenues from the tax, which is expected to total 15 billion yen a year, will be used to fund subsidies for switching to low-emission vehicles and improving gas station so that they carry more environmentally friendly fuels. Diesel vehicles equipped with diesel particulate filters and those that meet stricter standards expected to come into effect in the future will be exempt from the tax.

The industrial waste tax is aimed at cutting the amount of waste discharged--as serious societal problem as evidenced by the scandal surrounding the illegal export of industrial waste to the Philippines. Businesses that act as go-betweens in the disposal business will be taxed 250 yen per ton of waste. The revenues generated by the tax are expected to reach 2.2 billion yen a year.

The tax on new pachinko machines aims to cut down the number of old machines thrown out, as the trashed machines are creating an environmental problem. Pachinko parlors will be taxed for each new machine they install, generating expected revenues of 3 billion yen a year.

As for the hotel-stay tax, guests at hotels or inns that charge more than 10,000 yen a night will pay 100 yen yen in taxes per stay. The revenues are expected to total 1.3 billion yen annually. The United States and other countries have already introduced such taxes.
 

In the News