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Local governments in Japan growing more reliant on nuclear taxes

Local governments growing more reliant on nuclear taxes, THE ASAHI SHIMBUN,  by Hideki Muroya and Takuho Shiraki.January 20, 2021  Local governments are increasingly depending on tax revenues from the nuclear plants they host, a relationship that has deepened over the 10 years since the Fukushima nuclear disaster, an analysis by The Asahi Shimbun shows.That follows the introduction of new tax regimes that ensure a steady flow of nuclear-related tax yields–even when reactors are idle or in the process of being decommissioned. They were brought about largely through increasing existing taxes on nuclear fuels and levying new taxes on spent nuclear fuels kept at the plants.

In fiscal 2011, right after the triple meltdown at the Fukushima No. 1 nuclear power plant, jurisdictions home to nuclear plants and related facilities yielded some 20.1 billion yen ($193.7 million) in taxes. The bulk of that came from taxes on nuclear fuel; many local governments only began collecting spent fuel taxes years after the accident.

But then the figure more than doubled to an estimated 46.7 billion yen in fiscal 2020, ending in March, despite the nuclear plants being offline.

The Asahi Shimbun studied nuclear-related tax revenues received by host municipalities and the 13 prefectures where those municipalities are located.

Local governments can impose taxes on nuclear fuel and spent nuclear fuel at plants and related facilities through approving ordinances to do so.

Of all the jurisdictions examined, Aomori Prefecture, where nuclear fuel cycle facilities are concentrated, and Fukui Prefecture, which hosts 15 reactors, the most in Japan, account for more than 60 percent earned through those taxes.

The amount for fiscal 2020 is larger than the 40.3 billion yen brought in during fiscal 2010, when the plants were operating.

Nuclear fuel taxes were originally based on the value of reactor fuel.
But all the nuclear plants went offline following the Fukushima disaster in March 2011.

As a result, six prefectures housing nuclear plants reported no tax revenues from nuclear fuel taxes in fiscal 2011.

Desperate to secure income sources even during plant closures, Fukui Prefecture introduced in autumn 2011 a new fuel-tax system based on reactor output capacity–meaning the reactors can be taxed even when shut down.

Other jurisdictions home to nuclear plants followed suit. ….. http://www.asahi.com/ajw/articles/14121969

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January 21, 2021 - Posted by Christina Macpherson | business and costs, Japan, politics

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