In 2023, the tax expenditure on natural gas for fossil fuel production in Japan stood at 0.008% of GDP. From 2024 to 2025, this figure is forecasted to remain stable at 0.008% of GDP. An incremental rise to 0.009% is anticipated in 2026, sustaining through to 2028, indicating a modest upward trend. The forecasted year-on-year growth remains flat between 2024 and 2025, with a modest increase starting in 2026. The Compound Annual Growth Rate (CAGR) over this period indicates a stable growth trajectory, averaging minimal change per year.
Future trends to watch for include shifts in Japan's energy policies and global energy market dynamics, which may influence tax expenditures. Additionally, advancements in renewable energies could impact reliance and spending on fossil fuel-based natural gas.
