Kochi Prefecture Forest Environment Tax introduced April 2003

Kochi Prefecture Forest Environment Tax introduced April 2003

In April 2003, Kochi Prefecture became the first prefecture in Japan to introduce a forest environment tax. This system, in which a flat 500 yen tax is added to the prefectural inhabitant tax and the proceeds are used to improve forests, was revolutionary at the time. The background to the introduction of this tax was that the deterioration of water retention capacity and the loss of water source recharge functions were becoming increasingly serious due to the deterioration of mountain forests. Due to rapid urbanization and the decline of the forestry industry after the period of rapid economic growth, artificial forests left unattended without thinning increased in many areas, and the risk of landslides and drought was becoming apparent. In Kochi Prefecture in particular, despite its high precipitation, the sustainable use of water resources was in jeopardy, and conservation of the entire watershed was urgently needed.

At the time, Japanese society was debating the pros and cons of an environmental tax, and following the adoption of the Kyoto Protocol in 1997, the concept of an "environmental tax" to reduce greenhouse gas emissions was being discussed both within and outside the government, but its nationwide introduction did not proceed due to opposition from industry and its impact on the overall tax system. Against this backdrop, Kochi Prefecture's introduction of its own environmental tax focused on forests drew attention as a pioneering example of a local government securing financial resources to protect its own natural resources.

The tax revenue was used for thinning and afforestation of degraded planted forests, maintenance of forest roads, and watershed management. The purpose was not merely to protect forests, but also to ensure a stable supply of drinking water and agricultural water, and was positioned as an infrastructure that would support the lives of residents and local industries. In addition, forest improvement was also linked to securing carbon dioxide sinks, and was internationally recognized as a part of global warming countermeasures.

Furthermore, the efforts of Kochi Prefecture generated a ripple effect that led other local governments, including Kanagawa and Okayama Prefectures, to consider and implement forestry environmental taxes. This example of a local government tackling environmental issues on its own initiative and seeking consensus building while asking local residents to bear the burden of the burden was indicative of a new direction for local administration in the early 2000s, when decentralization was underway.

The introduction of the forest environment tax in Kochi Prefecture was an attempt by the local government to proactively create financial resources to protect local resources, and it will be talked about for years to come as a "testing ground for environmental policy" that links the environment, the economy, and the lives of local residents.