Apr 30 09:19 AM US/EasternTOKYO, April 30 (AP) - (Kyodo) — The government pledged Wednesday to chop wasteful spending for road building projects to cover tax revenue shortfalls worth an estimated 180 billion yen resulting from the loss of gasoline and other road-related tax surcharges for one month.
Prime Minister Yasuo Fukuda said at a press conference, "We should not waste even one yen of the people's tax money. We have decided to immediately stop inappropriate spending of road-related taxes and introduce competitive bidding."
Finance Minister Fukushiro Nukaga told a separate news conference that he expects the infrastructure ministry will "eliminate wasteful use of tax money and use financial resources efficiently" in implementing the nation's road construction plans.
Nukaga denied the possibility that the government will issue deficit- covering bonds right away to deal with the revenue shortage.
"We will consider that matter by examining the situation of tax revenues and the degree of budget implementation," he said.
The exact amount of lost road-related tax revenues will become clear around July, the finance minister said.
The road-related tax surcharges, comprising state and local levies on items such as gasoline and automobiles, were imposed in the 1970s on a provisional basis to expedite road development projects across Japan.
The government and the ruling parties proposed a tax bill to the Diet in January to extend the surcharges beyond their expiration date of March 31 to continue funding road-related projects. They also said abolishing the surcharges would create annual shortfalls of as much as 2.6 trillion yen in tax revenues.
The bill failed to pass the Diet by the end of March due to a political row between the ruling and opposition parties, leading to the abolishment of the surcharges at the beginning of April.
A tax code bill to reinstate gasoline and other road-related tax surcharges passed the Diet earlier in the day, paving the way for the restoration Thursday of a 25-yen per liter gas tax surcharge. The move limited tax revenue shortfalls to one month.




















