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

Part of the tax reform implemented by this amendment Act is the introduction of a carbon tax for climate change mitigation purpose, beginning in October 2012. The tax builds onto the pre-existing tax regime on crude oil, gaseous hydrocarbon and coal imports (JPY2,040, JPY1,080 and JPY700 (USD17.33, USD9.17 and USD5.95 respectively). The amount of tax that companies have to pay on a kilolitre of oil was introduced at a rate of JPY250 (USD2.12) during the fiscal year to March 2013. The tax will be increased to JPY260 (USD2.21) from April 2016. All the tax revenue will be allocated to curb energy-oriented CO2 emission, including introduction of renewable energy and enhancement of energy-saving measures.