Govt Adopts 1-T.-Yen Grants for Local Public Works

Tokyo, Dec. 8 (Jiji Press)--The Japanese government and ruling
coalition on Monday decided on a policy to distribute a total of one
trillion yen in grants to prefectural and municipal governments for use
exclusively in road construction and other public works projects.
The government and the ruling parties also adopted a temporary cut
in some automobile-related taxes from April 2009 in a move to help drivers.
They reached the decisions at a joint meeting to discuss a plan to
free up revenue from gasoline and other vehicle-related taxes, now spent
only on road projects.
Prime Minister Taro Aso told the meeting that the ruling bloc will
aim to pass related bills in the parliament next year.
On the new local grant program, the government and ruling parties
are considering allowing the use of the money for assisting public-private
enterprises that operate shipping and flight services to and from isolated
islands, because there is criticism about its use limited to public works.
As for auto-related taxes, they are considering reducing vehicle
weight and auto acquisition taxes for about three years.
The government and the coalition of the Liberal Democratic Party
and New Komeito, meanwhile, plan to maintain the controversial provisional
surcharges on gasoline and other auto-related taxes until an overhaul of
Japan's tax system, including a possible hike in consumption tax, is
realized.