TOKYO: Japan’s government and ruling bloc are considering extending for three years the special exemption of the tax on the delivery of gas oil used for vehicles to transport passengers at airports and for trains, Jiji Press has learned.

The extension, designed to help ease the heavy impact of the novel coronavirus crisis, will be included in the government’s tax system reform package for fiscal 2021, which starts next April, informed sources said.

The special tax relief is currently slated to expire at the end of March 2021.

The government decides whether to extend the special exemption of the aviation- and railway-related gas oil delivery tax about every three years.

The government and the ruling coalition, led by the Liberal Democratic Party, are also planning to keep the special tax exemption in place beyond the end of March for gas oil for vessels owned by the Defense Ministry, the Japan Coast Guard and the Fire and Disaster Management Agency, the sources said.

JIJI Press