Japan abolishes gasoline tax starting December 31

Tokyo, Nov 28 (Prensa Latina) The Japanese Parliament unanimously approved today the elimination of the additional tax on gasoline, effective December 31, 2025, in an effort to alleviate inflationary pressures in the country.

November 28, 2025
09:00

This tax, in effect since 1974, is 25.1 yen per liter, equivalent to US$0.16, and was created to finance roads.

According to the Japanese broadcaster NHK, the implementation of this bill will also pave the way for the removal of the provisional tax on diesel, effective April 1, 2026.

To prevent a sharp drop in prices, the government increased subsidies to refineries to offset the amount of the tax eliminated by mid-December.

The estimated revenue loss from the elimination of both taxes amounts to 1.5 trillion yen (approximately US$3.825 billion annually).

This measure is part of a 21.3 trillion yen (approximately US$136.35 billion) stimulus package approved on November 21.

To finance it, the government, led by Prime Minister Sanae Takaichi, aims to pass a supplementary budget by December 17, the largest since the COVID-19 pandemic.

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