Japan Extends Tax Exemption for Metallurgical Coal for 2 Years

Japanese governmental tax commission decided to extend special exemption from petroleum and coal tax for metallurgical coal for 2 years, announced on Thursday as a part of tax system revision for fiscal 2011 starting April 2011. Japan Iron and Steel Federation has requested the permanent tax exemption. However, the commission followed conventional 2-year extension while the commission noted the exemption will be reviewed again next year’s revision timing. Japanese steel industry would request again the permanent action.

The exemption for tax on metallurgical coal is discussed when tax revision talk for fiscal 2012 when the exemption for naphtha is focused before the end in fiscal 2012. No other country imposes tax on metallurgical coal. Japanese ruling party, Democratic Party’s tax commission has been required permanent exemption for coking coal.