Japan set to raise gas tax, motorists queue

Tue Apr 29, 2008 11:47pm EDT
 
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By Isabel Reynolds

TOKYO, April 30 (Reuters) - Japan's ruling coalition is set to ram a bill through parliament on Wednesday restoring a tax of 25.1 yen (24.1 U.S. cents) a litre on gasoline in the midst of a string of national holidays, despite opposition by many motorists.

The move will likely further damage public support for Prime Minister Yasuo Fukuda, which opinion polls have shown already sagging below 30 percent, as voters fret about rising food and fuel prices.

"I know restoring the tax in Golden Week will not be popular, but I believe the people are sensible enough to understand," top government spokesman Nobutaka Machimura told reporters, referring to government warnings that the tax revenue was needed for its hard-pressed budget.

Long lines of cars formed at petrol stations across the country ahead of the expected move as drivers took advantage of the lower prices in the midst of Golden Week -- a string of three national holidays spread over a week that is a popular time for travel.

Tempers frayed at one petrol station near Osaka, where a man was arrested for threatening another driver after jumping a fuel queue on Tuesday, the Mainichi Shimbun reported.

Aggravating the issue, record global oil prices mean the price of petrol will likely jump by 30 yen after the tax is restored on Thursday, Japanese media reported.

"I only drive on the weekend, but I went and filled up quickly," said Kazuhiko Uchida, 41, who works in manufacturing.

"I think I will stop using my car when it's not really necessary," he added.  Continued...

 

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