Hatoyama to consider scrapping provisional gasoline tax rate

Prime Minister Yukio Hatoyama indicated that he may scrap the provisional gasoline tax rate in line with the Democratic Party of Japan’s election campaign commitment. The DPJ recommended that the Cabinet maintain most of the current additional taxes imposed when gasoline and automobiles are purchased, but Hatoyama said he will be the one to make the final decision on the matter, among other budget and tax proposals the party made for Fiscal 2010. Hatoyama has said he hopes to boost domestic demand by terminating the provisional tax rates, despite a projected loss of about 2.5 trillion yen (US$28.13 billion) in revenues for central and local governments. (December 17, 2009)