The national government on Friday refused approval for Yokohama's plan to impose a tax on horse racing bets organized by the quasi-public Japan Racing Association.
The Public Management, Home Affairs, Posts and Telecommunications Ministry said the tax -- the first targeting the JRA -- could hamper national economic policy. Yokohama Mayor Hidenobu Takahide said he plans to ask an arbitration committee to review the decision.
With the implementation of a law to expand local autonomy last year, municipalities have been given greater freedom to impose taxes. But the latest decision suggests they still face difficulties in acting independently when it affects state coffers.