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Viewing cable 06TOKYO2328, Japanese Responses to Questions on French

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Reference ID Created Released Classification Origin
06TOKYO2328 2006-04-28 05:02 2011-08-25 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO7478
RR RUEHCHI RUEHFK RUEHHM RUEHKSO RUEHPB
DE RUEHKO #2328/01 1180502
ZNR UUUUU ZZH
R 280502Z APR 06
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC 1504
INFO RUEHZU/ASIAN PACIFIC ECONOMIC COOPERATION
RUEATRS/TREASURY DEPT WASHDC
UNCLAS SECTION 01 OF 02 TOKYO 002328 
 
SIPDIS 
 
SIPDIS 
 
TREASURY FOR INTERNATIONAL AFFAIRS 
 
E.O. 12958:  N/A 
TAGS: EAID EFIN EAIR AFIN APECO JA
SUBJECT:  Japanese Responses to Questions on French 
"Solidarity Tax" Proposal 
 
REF:  State 60006 
 
1.  The Japanese Ministry of Finance provided the 
following responses to the questions sent reftel: 
 
Question:  Does Japan levy airline ticket taxes which 
are used for general development assistance, or any 
other non-aviation related purpose, within the country? 
 
Answer:  No. 
 
Question:  If so, are the taxes used for tourism 
development? 
 
Answer:  Not applicable 
 
Question:  Is Japan considering levying such a tax in 
the future? 
 
Answer:  No. 
 
Question:  If Japan is considering such a tax, would it 
also consider allocating the funds collected to 
official development assistance outside the country? 
 
Answer:  Not applicable. 
 
Question:  Would Japan turn the funds collected over to 
an international organization for distribution as ODA 
or would it keep control of the funds within the 
country? 
 
Answer:  Not applicable. 
 
Question:  Is there precedence for tax streams from one 
specific sector being used to fund development or other 
projects?  If so, please provide examples. 
 
Answer:  There is no precedence for tax streams for one 
specific sector being used to fund development. 
However, certain excise taxes are earmarked for a 
corresponding Special Account that is used to fund 
certain categories of projects: 
 
-- Gasoline Tax revenues are earmarked for road 
construction and improvements. 
 
-- Aviation Fuel Tax revenues are used for 
expenditures related to airports and airport 
construction by the national and local governments. 
 
-- Petroleum and Coal Tax revenues are used for 
"various programs to secure a stable supply of 
petroleum and to develop and introduce alternative 
energy sources." 
 
-- Local Road Tax revenues are used for local road 
improvements. 
 
-- One-third of Motor Vehicle Tonnage Tax revenues are 
earmarked for local road improvements. 
 
-- Revenue from the "Promotion of Power Resources 
Development Tax" is used to promote the establishment 
and safety of atomic, hydroelectric, and geothermal 
power plants. 
 
For more details, please see Chapter 12 through 18 of 
"AN OUTLINE OF JAPANESE TAX 2005" from the following 
URL: 
 
http://www.mof.go.jp/english/tax/taxes2005e.h tm 
 
Question:  Does Japan use tourism taxes to fund general 
revenues? 
 
Answer:  No 
 
Question:  Would support for this airline ticket tax 
and eventual implementation be likely to result in 
Japan increasing ODA to other countries, or keeping ODA 
levels the same by reducing ODA from other government 
revenue sources to offset the airline ticket tax? 
 
Answer:  The Government of Japan does not know this at 
present. 
 
2.  The Ministry of Finance also requested USG 
responses to the questions raised in reftel.  The 
 
TOKYO 00002328  002 OF 002 
 
 
Finance Ministry officials who responded to Post's 
inquiry indicated that, in their view, these questions 
go beyond a country's position on the "solidarity tax" 
proposal and address broader tax practices. 
 
3.  Post would appreciate any further information or 
guidance the Department can provide. 
 
DONOVAN