The environment tax was introduced from Oct. 1. Although the introduction came very late, it is hoped that the new tax will help change the mind-set and behavior of enterprises and consumers so that they can contribute to mitigating global warming through reduction of carbon dioxide emissions, which account for about 90 percent of greenhouse gases.
The new tax covers all forms of fossil fuel including coal, oil products and natural gas. It is designed so that ¥289 will be imposed on one ton of carbon dioxide emitted. The tax rate will be set at a low level at first and then gradually raised in three stages — October 2012, April 2014 and April 2016.
The tax will take the form of a surcharge over existing oil and coal taxes. For example, ¥250 will be imposed on one kiloliter of gasoline or kerosene from Oct. 1, rising to ¥760 in April 2016.