Taxes

Under the Quality Control Act, Japan’s government exempts fuel ethanol from the gasoline tax of JPY 53.80 (USD)/liter and the petroleum and coal tax of JPY 2.80 (USD)/liter.

Furthermore, the government does not impose any import tariffs on imports of bio-ethyl tert-butyl ether (ETBE), ethanol to produce bio-ETBE, or industrial ethanol. However, it does impose a 10% import tariff on ethanol for direct blending with gasoline.

However, as with all products sold in Japan, ethanol is also subject to a consumption tax rate of about 10%.

Under the 2020 U.S.-Japan Trade Agreement, Japan will gradually eliminate the 10% import tariffs on imported ethanol for other uses, including direct blending with gasoline, over the span of ten years.