The Pollution Environmental Tax in Japan, measured as a percentage of GDP, stood at 0.0047% in 2023. Forecasts indicate a gradual decline from 2024 to 2028, decreasing from 0.0045% in 2024 to 0.0037% in 2028. This translates to an average year-on-year decrease of approximately -4.5% over the next five years.
Year-on-year variations:
- 2024: -4.26%
- 2025: -4.44%
- 2026: -4.65%
- 2027: -4.88%
- 2028: -5.12%
Compound Annual Growth Rate (CAGR) from 2023 to 2028 stands at approximately -4.67%, indicating a steady decline in the tax as a share of GDP over the given period.
Future trends to watch for include regulatory changes that may affect the tax rate, shifts in environmental policy, and economic factors that could influence the GDP and thereby alter the tax's proportion. Additionally, monitoring the effectiveness of this tax in mitigating pollution will be crucial for policy adjustments and sustainable development.
