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Government and Ruling Parties Council on Tax Revenues Earmarked for Road Projects


Friday, December 8, 2006



Photograph of the Government and Ruling Parties Council on Tax Revenues Earmarked for Road Projects


Prime Minister Shinzo Abe held the Government and Ruling Parties Council on Tax Revenues Earmarked for Road Projects at the Prime Minister's Official Residence. During the meeting, the Specific Measures for the Review of Tax Revenues Earmarked for Road Projects were compiled.

Addressing the Council, Prime Minister Abe said, "It has been my policy to build roads where they are really needed-roads that constitute infrastructure for our living industries. At the same time, we must change the system under which specific tax revenues are allocated solely to fund roads. I also have been urging that all of the tax revenues earmarked for road projects, including the gasoline tax, be reformed to reflect the needs of the people while maintaining the current tax rate."

"The Council today has compiled the Specific Measures for the Review of Tax Revenues Earmarked for Road Projects on the basis of these principles. This was an extremely challenging and difficult issue because until today, no changes had been made to the system since these tax revenues had been earmarked for road projects in 1954. The current agreement was reached after considerable discussion between the government and the ruling parties. Going forward, the government and the ruling parties will continue to cooperate closely and I will endeavor to ensure that this decision produces a result that truly benefits the people."

At the extraordinary Cabinet meeting held later that afternoon, the Cabinet approved the Specific Measures for the Review of Tax Revenues Earmarked for Road Projects.