[] Why Do We Need Environmental Tax?
In order to deal with the global phenomena of environmental destruction and resource scarcity, we must reform our financial/tax policy so that the environmental costs (i.e. the amount of burden placed on the environment) that stem from our daily activities, are built into the economy, ensuring a move in the direction of environmental protection and less dependency on non-renewable resources.

[] The Purpose of Environmental Tax
There is no single definition of "environmental tax", and the term is often used in a vague manner. However, there is a general agreement on the purposes and functions of environmental tax, which can be summarized as follows:

1) As an incentive to lessen environmental burdens and preserve the environment.
By translating the costs of environmental destruction or resource scarcity into appropriate monetary costs, the environmental tax aims to levy economic pressure on those who bring on adverse effects on the environment. By the same token, it aims to lighten the relative financial burden on those who contribute to the sustainability of the environment.

2) As a tool to preserve the environment through the use of its tax revenues
In addition to being used for environmental preservation and welfare, the revenues from the environmental tax can be used to cut back on labor fees in the form of income tax /and corporate tax cuts, annual pension relief, and social insurance premium relief.

[] Existing Environment-related Taxes in Japan
In Japan, the main targets of existing environment-related taxes are fuel, energy, and automobiles. However, these taxes do not necessarily designate environmental preservation as their primary goal. Moreover, compared to those of other developed countries, the environment-related taxes of Japan vary in the range of taxable targets, rate, and form of introduction. As a result, there are very few taxes in Japan that truly aim for environmental sustainability. In order to comprehensively solve issues such as environmental destruction or budget deficit, we must adopt an environmental tax system that directly targets the sources of environmental burden.

[] Introduction of a True Environmental Tax
In order to enhance the positive effects of a future environmental tax, we must avoid establishing a single rigid standard for taxable targets or tax rates and consider the following measures.

1) Tax returns and a revenue-neutral environmental tax
By cutting existing taxes using the revenue from the new environmental tax, we can establish a revenue-neutral scheme in which no increase is to be seen on the entire fiscal revenue, thereby enabling the introduction of the environmental tax without added economic burden on the taxpayers. Moreover, we can reduce the economic burden on companies and ordinary homes, by using tax revenue to reduce income tax, corporate tax, social insurance premiums, etc. In the long term, this can contribute to the conversion of industrial structure towards one with less environmental burdens.

2) The continuous and gradual increase in tax rates
By raising the tax rates gradually and continuously, not only can we lighten the initial economic strain on the taxpayers, but also allow them time to change their activities and consumption patterns towards benefiting the environment.

[] The Usage of Environmental Tax Revenues
When considering the introduction of environmental tax, not only is the collection stage important, but it is also crucial to understand the structure of the whole scheme, including the usage of its revenues.

As already mentioned, the revenues from the environmental tax can be used to deal with the environment, to develop welfare, to promote employment, or to reduce the economic burden on taxpayers. In each of the cases above, the purpose of the usage must be made clear to the public.

For the fair and effective introduction of environmental tax, citizens and NGO members must join policy makers and interest groups to proactively participate in multi-perspective discussions.