Key Facts
• Gasoline temporary tax rate introduced in 1972 to fund road construction.
• Tax adds approximately 25 yen per liter, generating 1.5 trillion yen annually.
• Gasoline prices in Niigata averaged 173.1 yen per liter as of September 1, 2025.
• Prices have decreased for three consecutive weeks but remain high.
• Abolishing the tax could reduce local tax revenue by 500 billion yen annually.
• Nationwide governors requested stable funding solutions on August 27, 2025.
• Proposals include replacing the tax with alternative financial mechanisms.
• Opposition parties advocate using surplus tax revenue instead of new taxes.
• Ruling and opposition parties remain divided on financial strategies.
• Opposition aims to abolish the tax by November 1, 2025, but uncertainty persists.
Summary
The debate over abolishing Japan’s gasoline temporary tax rate, introduced in 1972, continues as ruling and opposition parties fail to agree on alternative funding solutions. The tax, which adds 25 yen per liter, generates 1.5 trillion yen annually but has faced criticism for its prolonged implementation. Gasoline prices in Niigata remain high despite recent declines, averaging 173.1 yen per liter as of September 1, 2025. Abolishing the tax could significantly impact local governments, reducing tax revenue by 500 billion yen annually. While ruling parties propose alternative tax mechanisms, opposition parties suggest using surplus tax revenue to avoid new taxes. The opposition aims to abolish the tax by November 1, 2025, but the outcome remains uncertain.
