A cut in automobile levies and an "environment tax" to fight global warming are part of tax change proposals for fiscal 2012 the Democratic Party of Japan-led government agreed on Saturday, after struggling to reach a consensus with the party's rank and file.
In preparation for compiling the initial state budget for fiscal 2012 starting in April, the Cabinet decided to agree on the proposals before the Diet starts scrutinizing them in January. The Finance Ministry will draft the budget later this month.
The government "will fully support" the auto industry, Finance Minister Jun Azumi said. "Carmakers and related industries must keep playing the roles of leading the Japanese economy."