Discussion on "Mileage-Based Tax" Heats Up, Drawing Mixed Public Reactions and Inflation Concerns

Amid discussions regarding the abolition of the provisional gasoline tax rate, serious deliberations are underway for the introduction of a "mileage-based tax" as a measure to secure new, permanent revenue sources. Reports indicate that specific proposals are being examined by the Ministry of Finance's Tax Commission and the Ministry of Land, Infrastructure, Transport and Tourism's "Study Group on Road Maintenance Funding." This development has garnered diverse opinions from the public on social media.

The Context

For non-Japanese readers, the "provisional gasoline tax rate" (暫定税率, *zantei zeiritsu*) refers to a special additional tax on gasoline that was initially introduced as a temporary measure in Japan but has been repeatedly extended for decades, effectively becoming a permanent fixture. It is a significant source of funding for road construction and maintenance. The current debate centers on abolishing this long-standing provisional rate, which would reduce the tax burden on gasoline but also create a substantial gap in national revenue. The background for the proposed mileage-based tax stems from a decrease in gasoline consumption due to the widespread adoption of electric vehicles (EVs) and eco-cars, leading to a corresponding decline in fuel tax revenue. To secure funding for road maintenance and other infrastructure, the underlying view is that it's "unfair for eco-cars, which bear less fuel tax, to use roads in the same way as gasoline-powered vehicles."

Concerns for Local Residents and Logistics Operators

However, strong concerns have been raised regarding the impact on people's daily lives if the tax is introduced, particularly from local residents and logistics operators. Citing reports like "Will 'local residents' and 'logistics operators' face a heavy blow if introduced?", numerous comments on social media include "In rural areas, cars are a necessity, and longer driving distances mean an increased burden" and "Logistics costs will never decrease."

Furthermore, there are widespread concerns that increased logistics costs will ultimately be passed on to product prices, leading to "yet another rise in prices," potentially exacerbating the current high inflation. Some critics also argue, "Will a nation that profits from cars implement policies that discourage car ownership and use?" and express fears that "the automotive industry will decline."

Criticism of Government Policies

Many voices strongly criticize the government's revenue-securing measures, using terms like "They'll never lower taxes, even if it kills them," "layering incompetence," and "the worst of all foolish policies." Dissatisfaction with tax usage and government administration is also erupting, with calls such as "Tax Diet members for being Diet members" and accusations of "indifference to reducing expenditures." Some also comment that the benefits of abolishing the provisional gasoline tax rate would be offset by the new tax, resulting in "zero net benefit."

Some Support for the Proposal

On the other hand, some segments of the population welcome a mileage-based tax. For example, users who own multiple hobby cars have commented, "Welcome mileage tax! I'd even prefer abolishing the annual automobile tax and making it all mileage-based. It's tough to lose 150,000 yen annually just for cars mostly sitting idle." This view suggests that taxation based on vehicle usage frequency would be fairer.

While some calm opinions view the current situation as "just a rumor" or "haven't read any articles yet," public interest and anxiety are growing regarding the possibility of a new tax being introduced in exchange for the abolition of the provisional gasoline tax rate.