The government and ruling coalition said Friday revenue from gasoline and other auto-related taxes will be freed up for purposes other than road construction from fiscal 2009, which starts next April.
The agreement is in line with the plan announced by Prime Minister Yasuo Fukuda in late March, when he tried to break the political deadlock before the provisional rates on the auto-related taxes expired on March 31.
By officially endorsing the plan, the Liberal Democratic Party-New Komeito ruling bloc now expects to get the Democratic Party of Japan-led opposition camp, which controls the Upper House, to come to the discussion table. The DPJ had refused to do so unless Fukuda's plan was endorsed by the ruling parties and the government.