12 December 2011 09:55 [Source: ICIS news]
TOKYO (ICIS)--The president of the Japan Chemical Industry Association (JCIA) has welcomed a recent decision by the Japanese government to indefinitely extend its two-year tax-exemption policy on naphtha and other petrochemical feedstocks, the association said on Monday.
“The chemical industry is faced with severe international competition in the same manner as the user-industries such as the automotive and the electric/electronic industries. In order for the chemical industry to redefine its position in Japan and secure employment, an equal footing of the business environment with overseas is necessary,” JCIA president Kenji Fujiyoshi said in a statement in Japanese.
“As a result of our petition of three years, we can say that it is a big development that [the government has decided to] make the tax-exemption policy on naphtha and other feedstocks practically permanent although it was not made an official regulation,” Fujiyoshi added.
The government decided during the meeting of the Tax Commission on 10 December to exempt from taxation imported and domestic volatile oil, including naphtha, for petrochemical production, according to an official document by the Ministry of Finance.
The government had previously rolled out a two-year exemption policy, which was extended for another two years in 2009.
The policy was due to end on 31 March 2012.
Meanwhile, the Japan Petrochemical Industry Association (JPCA) also issued a statement by its president on the decision on 10 December.
“A permanent arrangement by official regulation was not accepted [by the government] as per our association’s request, but the fact that the two-year duration of the tax exemption was removed and it was decided as ‘for the time being,’ we understand it as practically an indefinite duration. We think that this was a significant accomplishment,” said Kyohei Takahashi, the president of JPCA, in a statement in Japanese.
“We will continue to request a permanent arrangement of the tax-exemption by official regulation,” he added.
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections