Daily Yomiuri. Japan’s Economy, Trade and Industry Ministry plans to introduce a new preferential tax system in fiscal 2008 aimed at promoting a wider use of biofuel in vehicles.
Under the plan, biofuel mixed with gasoline will be exempt from the gasoline tax—currently ¥53.8 per liter (US$0.46)—in proportion to the amount of biofuel included. If blended with diesel oil, biofuel will be free from the diesel oil delivery tax, currently ¥32.1 yen (US$0.27) per liter. Currently there is no tax break for biofuel blends.
The new tax plan will be incorporated in a joint request to the government’s Tax Commission by the ministry together with the Agriculture, Forestry and Fisheries, and Environment ministries.