Heated Debate Erupts Between Government and Public Over Funding as Abolition of Provisional Gasoline Tax Rate Becomes Realistic

As the abolition of the provisional gasoline tax rate, which would ease the burden of gasoline prices, becomes a realistic possibility, a heated debate is unfolding between the government and the public over securing financial resources. In response to Finance Minister Kato's call for measures to address an annual tax revenue reduction of 1.5 trillion yen, a variety of opinions have flooded social media, with widespread distrust of the government's fiscal management and numerous proposals for alternative funding sources.

Finance Minister Kato emphasized the importance of addressing financial resource challenges if the provisional gasoline tax rate were to be abolished. He indicated an estimated annual tax revenue loss of 1.5 trillion yen, subtly conveying a cautious stance. This statement highlighted the government's financial challenges amidst rising public expectations.

However, in response to the Finance Minister's remarks, numerous criticisms and concrete alternative funding proposals were posted by the public on social media. Many voices expressed sentiments such as, 'It's absurd to only discuss funding when it comes to tax cuts,' and 'They spend limitlessly when distributing money overseas.' Notably, comments referencing reports of an 80 trillion yen investment in the US stood out, questioning the government's spending priorities with remarks like, 'If they can give 80 trillion yen to Trump, they should be able to come up with about 1.5 trillion yen.'

Furthermore, specific funding sources were suggested, such as 'It would be easy if they cut wasteful spending in the special accounts, which have bloated to approximately 430 trillion yen,' and 'There's a tax revenue surplus of 2,264.5 billion yen in 2024.' Calls for reviewing existing policies and expenditures also emerged, including 'If they abolish the ineffective Children and Families Agency, there would be change left over,' and 'Since they are raising salaries for Diet members, they should be able to find funding in a similar way.'

Moreover, a fundamental question was raised regarding the history of the provisional tax rate: 'It's inherently strange that a tax originally introduced temporarily has been treated as a permanent tax source for decades.' The move to abolish the provisional gasoline tax rate is gaining momentum, with opposition parties, particularly the Democratic Party for the People, drafting legislation. Some voices also expressed doubt about inter-party policy coordination and past pledges, asking, 'What happened to the consumption tax reduction or abolition?'

Meanwhile, there are high public expectations if the provisional tax rate is abolished. Voices such as 'If it's abolished, I want to drive more actively' and 'I expect it to ease the burden on household budgets and logistics' have been raised, indicating hopes for revitalizing economic activity. However, concerns about new taxation methods, such as 'If the provisional tax rate is abolished, a mileage-based tax will likely emerge,' are already appearing, drawing attention to the future of tax reform.

The abolition of the provisional gasoline tax rate is a critical policy issue directly impacting people's lives. The government is urged to provide thorough explanations and concrete measures on how it will balance securing financial resources with reducing the public burden.

The context

The "provisional tax rate" (暫定税率, zantei zeiritsu) in Japan refers to a surtax on gasoline and other fuel taxes that was originally introduced temporarily for specific purposes, such as road construction, but has remained in effect for decades. It adds a significant amount to the price of gasoline. This "duplex structure" of the gasoline tax has long been a point of contention, especially when fuel prices are high. While the article doesn't explicitly name it, the discussion around abolishing the provisional tax rate is often linked to the "trigger clause" mechanism, which would automatically suspend the surtax if gasoline prices exceed a certain threshold for a specified period.

The Japanese government operates various "special accounts" (特別会計, tokubetsu kaikei), which are separate budgets established for specific programs or projects, often criticized for their lack of transparency and potential for wasteful spending. The "Children and Families Agency" (こども家庭庁, kodomo katei chō) is a relatively new government agency established in 2023 to oversee policies related to children and families. It has faced criticism from some who view it as ineffective or an unnecessary expenditure, especially when budget cuts are debated. The current debate highlights a common frustration among the Japanese public regarding government spending priorities, particularly when large sums are allocated for international aid or investments while domestic tax burdens remain high.