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Japan debates higher gas tax

TOKYO, Jan. 24 (UPI) -- Political tension is heating up in Japan over emissions and fuel issues.

The government is debating whether to extend the temporary higher rate for the gasoline tax, Asia Times reported.

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Prime Minister Yasuo Fukuda wants to retain the temporary higher rate for fear of losing tax revenues, but the opposition is demanding the rate be cut due to high gas costs.

As of Jan. 21, the retail price for regular gasoline averaged $1.4 per liter and cutting the tax rate could lower that cost by several cents.

Fukuda and his party also claim cutting the gas tax will send a bad message amid increasing concern over fossil fuel use and greenhouse gases. The government said cutting taxes will increase car use and increase emissions.

A government bill to extend the temporary higher rates for gasoline and other road-related taxes was submitted Wednesday. If the bill fails to pass Parliament before the end of March, the temporary higher tax rates will expire.

Despite its commitment to the Kyoto Protocol, Japan's emissions rose 6.4 percent in fiscal 2006 from fiscal 1990, according to preliminary government figures.

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