Cost at pump to drop until April-end vote

By MASAMI ITO　Staff writer

http://search.japantimes.co.jp/cgi-bin/nn20080401a1.html

Gasoline prices are set to fall by ¥25 per liter after the ruling bloc and opposition camp failed to agree Monday on extending provisional extra levies on gas and other auto-related taxes.

The Diet, however, approved a stopgap bill to maintain until the end of May various other special tax measures that would have expired Monday, the final day of fiscal 2007. This step was also part of the government's original tax package.

"The moment has finally arrived when we can (meet the public's expectations for) lower gasoline prices at a time when (the cost of) everything else is rising," said Yukio Hatoyama, secretary general of the Democratic Party of Japan, the top opposition force.

Prime Minister Yasuo Fukuda apologized for not being able to resolve the political deadlock and for the subsequent confusion it has caused in local economies and among the public.

"I would like to apologize from the bottom of my heart (because) the public will now have to pay for (the Diet) failing to resolve (the gasoline price issue) politically," Fukuda said during a news conference.

Desperate to curb the sinking support rate for his Cabinet, Fukuda and the Liberal Democratic Party-New Komeito ruling coalition spent all of last week trying to negotiate with the opposition parties to maintain the provisional auto-related tax rates.

But the DPJ, the main opposition party, refused to budge, arguing for the abolition of the special tax rates to lower gasoline prices.

With the Diet divided because the opposition camp controls the Upper House, Fukuda's efforts ended in vain — striking another major blow to his Cabinet.

"It is easy to campaign for lower gasoline prices to gain popularity," Fukuda said.

The Japan Times: Tuesday, April 1, 2008

(C) All rights reserved