JAPAN TO RAISE ENVIRONMENTAL TAX ON FUEL

A Japanese government tax panel, headed by finance minister Yoshihiko Noda, has confirmed it will raise levies on fuels as part of its environmental tax policy. Tax on petroleum will increase by 37% to 2,800 yen ($33) per kiloliter in three stages through 2015 beginning in October. However, the panel took the decision to lower levies for aviation fuel by 31% over three years from April to help make Japan’s airline industry more competitive. It will be the first tax cut on jet fuel since 1972. The commission is scheduled to compile overall tax guidelines for fiscal year 2011 today.