A tax policy advisory panel to Tokyo Gov. Shintaro Ishihara proposed Tuesday that the metropolitan government introduce a new tax on automakers reflecting the environmental impact of their products.
The tax, tentatively called a "clean automobile production promotion tax," would be the first of its kind targeted at automakers in Japan.
The proposal is in line with remarks by Ishihara in March that imposing a tax on automakers would be one of the most effective ways to urge them to develop and produce more environmentally friendly cars.
Under the proposal, the tax would be imposed in accordance with the number of vehicles shipped from auto plants across the nation for the domestic market.
Revenues would be pooled at a foundation for improving the environment. Half of the funds would go back to automakers as subsidies from the Tokyo Metropolitan Government, and the other half would be distributed among prefectural governments based on their amount of car traffic.
Separately, the tax panel called for the introduction of a carbon tax to deal with global warming. A 3,000 yen tax would be levied on fossil fuel containing a ton of carbon, translating into a tax of 1.9 yen per liter of gasoline.
In November 2000, the tax panel called on the governor to adopt four new taxes: a tax on large diesel-powered vehicles using the Metropolitan Expressway along with an industrial waste disposal tax, a hotel tax and a pachinko tax.
The metropolitan assembly enacted the hotel tax last week to levy 200 yen per night for stays costing 10,000 yen or more in Tokyo hotels and inns.
The metropolitan government is currently negotiating with the home affairs ministry on the tax, as local governments require ministry approval for new taxes.