The government is set to consider a so-called environment tax on oil, coal and other greenhouse gas-producing fuels as part of an overall tax reform plan later this year, according to an economic policy draft paper released Tuesday.

"The overall tax system will be re-examined, including the handling of an environment tax in light of the promotion of the low-carbon society," the draft version says.

This is the first time that an environment tax has been included in the policy paper as part of Japan's effort to lower greenhouse gas emissions.