Editorial

16:57 JST, August 25, 2025

Discussions are getting into full swing between the ruling and opposition parties on abolishing the provisional gasoline tax rate. It is necessary to secure alternative revenue sources to offset an about ¥1 trillion drop in tax revenue and make progress in establishing a new system that does not run counter to decarbonization efforts.

Six ruling and opposition parties, including the Liberal Democratic Party, Komeito and the Constitutional Democratic Party of Japan, agreed at the end of last month to abolish the provisional gasoline tax rate by the end of the year. Currently, concrete measures are being discussed in working-level talks.

The provisional gasoline tax rate was first applied in 1974. In order to address a shortage of financial resources for road construction and development, the two-year temporary measure increased tax revenue, but its application period has........

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