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Fukuda, opposition clash over expired gasoline tax PDF Print E-mail
Wednesday, 09 April 2008

TOKYO (AP) -- Japan's prime minister accused the opposition party leader on Wednesday of endangering the national budget by scuttling a gasoline tax without presenting a viable funding alternative.

In heated parliamentary debate, Prime Minister Yasuo Fukuda slammed Democratic Party of Japan President Ichiro Ozawa for opposing the tax and delaying legislative discussions.

"The current fiscal conditions cannot be allowed to continue," Fukuda said.

The gasoline tax expired April 1 after the opposition bloc refused to back its renewal, leading to price cuts at the pumps and postponement of road construction projects funded by gasoline tax revenues.

The failure to extend the tax after a weekslong opposition boycott of parliamentary proceedings was a major blow to Fukuda's government, whose popularity is plunging. The tax's expiration also highlighted Fukuda's weak political clout in the face of a strident opposition, which took control of parliament's upper house after a sweeping victory in July elections.

The Democrats have also delayed some other key policies of the Fukuda government, including Japan's naval mission supporting the U.S.-led war in Afghanistan and the appointment of the central bank governor.

The tax expiration will result in a revenue deficit of 2.6 trillion yen (US$25.4 billion), Fukuda said.

After the tax expired, the price of gasoline fell about 25 yen (25 US cents) per liter (0.26 gallons), according to the Finance Ministry.

"The general public seems to be happy about it," Ozawa said.

Ozawa said the tax expiration has only caused some local governments to delay or cancel planned road construction projects and there was no need to continue the tax because Japan does not need new highways or major road repairs.

"I think we should return the 2.6 trillion yen to the public, especially at a time when the prospect for Japan's economy is uncertain because of the U.S. slowdown," Ozawa said.

Mainichi News Copyright 2005-2006 THE MAINICHI NEWSPAPERS. All rights reserved. Mainichi features the best news in Japan, current news in Japan, Japan news in English, Japan business news, Tokyo Japan news, and Japan entertainment news. Mainichi News is syndicated in accordance with editorial regulations: personal and noncommercial purposes.
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Located between Kyushu and Taiwan, Okinawa is the largest island in Okinawa Prefecture. Although part of Japan, Okinawa has it's own unique legacy, spoken language, and influencing culture. The people of Okinawa are descendants of the Ryukyus who had ties with both Japan and China.
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