Act Partially Amending the Law on Special Tax Measures (Tax Reform Act 2012) (Law No. 16 of 2012) Japan 2012

Name of policy Global Warming Tax - Special Measures for Petroleum and Coal Tax (Tax Reform Act 2012, Law No. 16 of 2012)
Jurisdiction Country
Supranational region
Country Japan
Region Asia


Subnational region or state
City or local
Policy objective
  • Mitigation
Type of policy instrument
  • Economic Instruments
    • Fiscal or financial incentives
      • CO2 taxes
      • Energy and other taxes
      • Tax relief
Sector name
  • Industry
    • Electricity and heat
      • Buildings
        • Transport
          • Heavy duty vehicles
          • Light duty vehicles
        Policy description The government will introduce "Carbon Dioxide Tax of Global Warming Countermeasure" with the aim of controlling the emission of energy-originated CO2 which accounts for about 90% of greenhouse gas causing global warming. The government will add the following tax rates corresponding to the amount of CO2 emission on the petroleum and coal tax on fossil fuel. Added tax rate:

        - crude oil, petroleum products: JPY 760/kl (at present: JPY 2,040/kl) - gaseous hydrocarbons: JPY 780/t (at present: JPY 1,080/t) - coal: JPY 670/t (at present: JPY 700/t) These tax rates will be in force on October 1, 2012. Necessary interim measures will be taken until March 31, FY2016.

        - standard tax rates will be applied from May 1, 2012 to such vehicles that satisfy certain conditions relating to environmental performance such as fuel consumption at the time of the supply of motor vehicle inspection certificates. These conditions could be changed depending on the shift of environmental standards (FY2015 environmental standards are now applicable.) Also, provisional tax rate applied to other vehicles will be reduced with the exception of vehicles used for more than 13 years. - taking into account the view of promotion of global warming countermeasures and maintenance and promotion of technical superiority in automotive industry, the government will change environmental standards of “eco-car tax cut”, and extend automobile tonnage tax for three years by April 2015, extending reduction measures for vehicles with high environmental performance.

        Policy type
        • Changing activity
        • Energy efficiency
        • Nuclear or CCS or fuel switch
        • Non-energy4
        Policy stringency
        Implementation state Implemented
        Date of decision 2012
        Start date of implementation
        End date of implementation
        High impact GHG reduction
        Impact indicator


        Source or references http://www.mof.go.jp/english/tax_policy/tax_reform/fy2012/tax2012a.pdf
        Supports policies
        Is supported by policies
        Comments (background and assessment)
        Status Final

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