Yoshio Yatsu, the minister of agriculture, forestry and fisheries, said Friday he opposes Yokohama's plan to introduce Japan's first local tax on horse-race betting.

He said there are "doubts" about the way it targets a specific financial resource.

On Thursday, the Yokohama Municipal Assembly approved a revised ordinance allowing the city to impose a 5 percent tax on sales at the two off-track betting booths in the city. Both are run by the Japan Racing Association, an affiliate of the ministry.

Yatsu said he realizes local governments want to secure adequate financial resources but added that it would be a "problem" if the tax system is changed without discussion at the central government level.

He said initiatives by local governments to impose taxes would lead to a widening gap in tax resources among municipalities.

Yokohama estimates the 5 percent levy on bets placed at the city's two off-track betting booths will bring in 1 billion yen annually. The estimate is based on the 136 billion yen the JRA earned last year in parimutuel ticket sales in the city.

The JRA runs horse racing for the benefit of state coffers. While exempt from corporate tax, it is legally required to pay to the central government 10 percent of its annual ticket proceeds.

Yokohama's tax plan -- classified as a regular tax not set by law under the Local Tax Law -- must first be approved by the Home Affairs Ministry before it can take effect.

Yatsu said that he would consider the issue thoroughly if and when the city submits the tax proposal to the ministry. Although the JRA has never paid tax to Yokohama, it has contributed annually toward the "management of the environment" -- money dubbed a "nuisance payment." It paid the city 113 million yen in 1999. This marked an increase of 10 million yen from 1995, even though the number of bettors dropped by 1.7 million to 7.7 million over the same period.

JRA Director Hisashi Suzuki earlier voiced fears that Yokohama may have set a precedent. "We have concerns that other municipalities would easily follow Yokohama's policy," he said.