Japan's ruling-led lower house on Wednesday approved the higher gas tax bill to reinstate the surcharge of 25 yen per liter that expired on March 31.
With the surcharge in place on Thursday, the average retail price of regular gasoline is expected to top 160 yen per liter by the end of May, industry officials said.
The decision came one month after the ruling and opposition camps failed to reach an agreement on the extension of higher gas tax and other road-related taxes, which were raised on a provisional basis in the 1970s. The gas tax was thus cut by 25 yen per liter as of April 1.
It is the first time in 56 years that the lower house has held a second vote in accordance with the constitution.
Under Article 59 of the Constitution, the gas tax bill, which was submitted to the upper house on Feb. 29, can be sent back to the lower house if the upper house does not hold a vote on it within 60 days. The bill will become law once the lower house votes by a two-thirds majority for it.
With the surcharge in place on Thursday, the average retail price of regular gasoline is expected to top 160 yen per liter by the end of May, industry officials said.
The decision came one month after the ruling and opposition camps failed to reach an agreement on the extension of higher gas tax and other road-related taxes, which were raised on a provisional basis in the 1970s. The gas tax was thus cut by 25 yen per liter as of April 1.
It is the first time in 56 years that the lower house has held a second vote in accordance with the constitution.
Under Article 59 of the Constitution, the gas tax bill, which was submitted to the upper house on Feb. 29, can be sent back to the lower house if the upper house does not hold a vote on it within 60 days. The bill will become law once the lower house votes by a two-thirds majority for it.
