2012 Volume 5 Issue 2 Pages 25-33
It is appropriate in principle that an environmental tax on energy goods should be based on the carbon content in a fossil fuel. However, for energy goods in which market price fluctuates, there is a risk that reduction of energy demand may become uncertain under a specific duty system. Therefore, when targeting demand reduction of energy goods, an ad valorem duty system is judged to be desirable. The environmental value-added tax system proposed in this paper took into consideration the employment of the system in the framework of Japan’s present consumption tax by designing a taxation system based on ad valorem duties.
