Japan – Aichi Prefecture to introduce a tax on industrial waste in 2006

The Japanese Ministry of Internal Affairs and Communications (MIC) approved in July 2005 Aichi Prefecture‘‘s plan to institute a new tax on industrial waste next fiscal year. Japan for Sustainability report that the tax aims to reduce waste generation, reduce the volume of landfill waste and promote recycling. The prefecture plans to use tax revenues to finance measures related to industrial waste reduction and recycling.



Under the planned tax, 1,000 yen (about US$9) per ton of industrial waste will be levied on firms located both in and outside the prefecture that carry industrial waste to final disposal sites within the prefecture, including both firms that generate industrial waste and intermediate treatment facilities. These landfill-generating companies will be obliged to collect the tax and pay it to the prefecture. When companies treat their own industrial waste, the tax will be 500 yen (about US$4.5) per ton. Annual tax revenue is expected to amount to 1.371 billion yen (about US$12.5 million).



Following approval by the ministry, the prefecture plans to establish relevant regulations and inform as many relevant taxpayers as possible about the levy by holding briefing sessions. The tax ordinance is scheduled to come into effect on April 1, 2006