Japan may freeze aviation fuel tax increase
The transport ministry has judged that continued tax support for airlines is necessary amid soaring fuel prices reflecting the Middle East turmoil.
The Japanese transport ministry is considering freezing a planned increase in aviation fuel tax for the upcoming fiscal year, according to sources. This move comes as airlines grapple with high fuel prices stemming from geopolitical turmoil in the Middle East. The tax, which currently stands at ¥26,000 per kiloliter, finances airport improvements and noise control measures.
Introduced in fiscal 2021, the rate had been reduced from the original ¥35,000 to support airlines during the COVID-19 pandemic. It has been gradually increased back up to ¥18,000 in fiscal 2026, with a further hike to ¥21,000 scheduled for fiscal 2027. However, the ministry plans to request that the rate be held at ¥15,000 for the remainder of fiscal 2026 and at its current reduced rate of ¥7,500 for flights to and from Okinawa, as well as remote islands, which currently see a lower rate of ¥13,000 and ¥19,500 respectively.
Airlines may resort to fuel surcharges on domestic flights in response to the tax hike, potentially impacting consumer costs.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
