FOCUS: Japan Sees No Stable Funding for Costly Policy Plans

Tokyo, Nov. 1 (Jiji Press)--The Japanese government has yet to find specific ways to secure some 2.4 trillion yen in stable financial resources to fund both the planned elimination of the provisional gasoline tax surcharge and a free education program.

Six ruling and opposition parties broadly agreed Friday to scrap the add-on levy for gasoline on Dec. 31 and for gas oil on April 1 next year

Meanwhile, the ruling Liberal Democratic Party, its new coalition partner Nippon Ishin no Kai (Japan Innovation Party) and Komeito, which ended its coalition with the LDP last month, agreed Wednesday on details to effectively make high school education free and boost support for public schools.

The scrapping of the gasoline surcharge is estimated to reduce tax revenue by 1 trillion yen per year, while the removal of the gas oil surcharge is expected to cut revenue by 500 billion yen annually.

The six parties have agreed on the need for the government to review special tax cuts for corporations and reach a conclusion by the end of the year to make up for the expected revenue drop, and to consider raising taxes on extremely high-income earners as an option.

[Copyright The Jiji Press, Ltd.]