Act on Special Measures Concerning Taxation

From the viewpoint of promoting global warming countermeasures, the amount of petroleum and coal tax on crude oil, gaseous hydrocarbons or coal shipped out from an extraction site of crude oil, gaseous hydrocarbons or coal, or on crude oil or petroleum products, gaseous hydrocarbons or coal taken out of a bonded area, on or after October 1, 2012, is, notwithstanding the provisions of Article 9 of the Petroleum and Coal Tax Act, the amount calculated at the tax rate specified in each of the following items according to the category listed in that item:

crude oil and petroleum products: 2,800 yen per kiloliter;

gaseous hydrocarbons: 1,860 yen per ton;

coal: 1,370 yen per ton.

In the case where a person intends to take out of a bonded area any of the following coal (referred to as "coal for specified uses" in this Article), when the person intending to take it out takes out that coal for specified uses by March 31, 2029 with the approval, obtained pursuant to the provisions of Cabinet Order, of the director-general of the customs house with jurisdiction over the place for tax payment (in the case where the person has obtained the approval of the Commissioner of the National Tax Agency under the provisions of Article 15, paragraph (1) of the Petroleum and Coal Tax Act, the place for tax payment that would apply if the person had not obtained that approval; the same applies hereinafter in this Section), the amount of petroleum and coal tax on that taking out is, notwithstanding the provisions of the preceding Article, the amount calculated at the tax rate specified in Article 9, item (iii) of that Act:

coal that a person engaged in caustic soda manufacturing uses for its own power generation (limited to that relating to electricity used for the manufacture of that caustic soda);

coal that a salt manufacturer prescribed in Article 2, paragraph (2) of the Salt Industry Act (Act No. 39 of 1996) uses for its own power generation (limited to that relating to electricity used for the manufacture of salt (meaning salt prescribed in paragraph (1) of that Article) by the method specified by Cabinet Order as a method of concentrating seawater by passing an electric current).

The provisions of Article 18-2, Article 21 and Article 22 (excluding item (i)) of the Petroleum and Coal Tax Act and Article 74-5, item (iv) (excluding (b) and (d)), Articles 74-8 through 74-11 and Article 74-13 of the Act on General Rules for National Taxes apply mutatis mutandis to a person who uses coal for specified uses to which the provisions of the preceding paragraph have been applied for the uses prescribed in the items of that paragraph and to a seller of coal for specified uses to which the provisions of that paragraph have been applied, and the provisions of Article 74-5, item (iv), (d), Article 74-8 and Article 74-13 of that Act apply mutatis mutandis to a person found to be obliged to transfer coal for specified uses to a person who uses coal for specified uses to which the provisions of that paragraph have been applied for the uses prescribed in the items of that paragraph or to a seller of coal for specified uses to which the provisions of that paragraph have been applied, or any other person found to have transactions, in connection with that person's business, with a person who uses coal for specified uses to which the provisions of that paragraph have been applied for the uses prescribed in the items of that paragraph or with a seller of coal for specified uses to which the provisions of that paragraph have been applied, respectively. In this case, the phrase "Article 4 and Articles 13 through 17" in Article 18-2 of the Petroleum and Coal Tax Act is deemed to be replaced with "Article 90-3-3, paragraphs (4) and (5) of the Act on Special Measures Concerning Taxation"; the phrase "an extractor or seller of crude oil, an extractor of gaseous hydrocarbons or coal, an importer of crude oil, etc., a petroleum refiner specified by Cabinet Order, a special filer, or a person who has obtained the approval referred to in Article 15, paragraph (1)" in Article 21 of that Act is deemed to be replaced with "a person who uses coal to which the provisions of Article 90-3-3, paragraph (1) of the Act on Special Measures Concerning Taxation have been applied (referred to as 'coal for specified uses' in this Article) for the uses prescribed in the items of that paragraph and a seller of coal for specified uses", the phrase "the extraction of crude oil, gaseous hydrocarbons or coal, or crude oil, etc." in that Article is deemed to be replaced with "coal for specified uses", and the phrase ", sale or taking out of a bonded area" in that Article is deemed to be replaced with "or sale"; the phrase "crude oil, etc. (meaning crude oil, etc. prescribed in Article 4, paragraph (2) (Persons Liable for Tax) of that Act" in Article 74-5, item (iv), (a) of the Act on General Rules for National Taxes is deemed to be replaced with "coal for specified uses (meaning coal to which the provisions of Article 90-3-3, paragraph (1) of the Act on Special Measures Concerning Taxation have been applied"; the phrase "crude oil, etc. or the crude oil, etc. prescribed in (b)" in (c) of that item is deemed to be replaced with "coal for specified uses"; and the phrase "(a) or (b)" in (d) of that item is deemed to be replaced with "(a)", and the phrase "crude oil, etc." in (d) of that item is deemed to be replaced with "coal for specified uses".

A person who uses coal for specified uses as referred to in the preceding paragraph for the uses referred to in that paragraph and a seller of coal for specified uses as referred to in that paragraph (including a person who succeeds to the obligation to keep books pursuant to the provisions of Article 22 (excluding item (i)) of the Petroleum and Coal Tax Act as applied mutatis mutandis pursuant to the provisions of that paragraph), to whom the provisions of Article 21 of the Petroleum and Coal Tax Act and Article 74-5, item (iv) (excluding (b) and (d)) of the Act on General Rules for National Taxes apply mutatis mutandis pursuant to the provisions of the preceding paragraph, are each deemed to be the person prescribed in Article 21 of the Petroleum and Coal Tax Act and the provisions of Article 24 (limited to the part relating to item (v)) and Article 25, paragraph (1) of that Act and Article 128 (limited to the part of item (ii) relating to Article 74-5, item (iv), (a) and (c) of that Act and the part of item (iii) relating to item (iv), (a) of that Article) and Article 130 of the Act on General Rules for National Taxes apply to them, and a person found to be obliged to transfer coal for specified uses to a person who uses coal for specified uses as referred to in that paragraph for the uses referred to in that paragraph or to a seller of coal for specified uses as referred to in that paragraph, or any other person found to have transactions, in connection with that person's business, with a person who uses coal for specified uses as referred to in that paragraph for the uses referred to in that paragraph or with a seller of coal for specified uses as referred to in that paragraph, to whom the provisions of Article 74-5, item (iv), (d) of that Act apply mutatis mutandis pursuant to the provisions of the preceding paragraph, is deemed to be the person prescribed in (d) of that item and the provisions of Article 128 (limited to the part of items (ii) and (iii) relating to Article 74-5, item (iv), (d) of that Act) and Article 130 of that Act apply to that person, respectively.

Coal for specified uses to which the provisions of paragraph (1) have been applied must not, within two years from the day on which that coal for specified uses was taken out with the approval referred to in that paragraph, be used for a use other than the uses prescribed in the items of that paragraph, or be transferred for use for a use other than the uses prescribed in the items of that paragraph; provided, however, that this does not apply in the case where there are unavoidable reasons and the approval of the director-general of the customs house has been obtained pursuant to the provisions of Cabinet Order.

When the approval referred to in the proviso to the preceding paragraph has been obtained, or when, without obtaining that approval, coal for specified uses referred to in that paragraph has been used for a use other than the uses prescribed in that paragraph or transferred for use for a use other than the uses prescribed in that paragraph, the director-general of the customs house is to immediately collect from the person who has come to fall under any of these cases, with regard to that coal for specified uses, petroleum and coal tax in an amount equivalent to the difference between the amount of petroleum and coal tax calculated at the tax rate specified in item (iii) of the preceding Article and the amount of petroleum and coal tax calculated under the provisions of paragraph (1).