Tax reform

Committee:
Automobile
status:
Some progress
Published:
A fundamental review of auto-related taxes is scheduled to take place by the end of fiscal 2025, when the current eco-car tax incentives expire.

Recommendations

  • The penetration of electric vehicles (EVs) in Japan is currently at a low level, and it is necessary to accelerate the spread of xEVs, which will contribute to achieving carbon neutrality. System reforms that lead to increased burdens on users should be avoided, and we request that tax reforms be considered to accelerate the spread of xEVs, such as EVs, PHEVs, and FCVs.
  • Japanese car owners are subject to excessive and complicated taxes compared to other countries. We would like to see simplification of auto-related taxes and a drastic reduction in the burden on users (such as the abolition of the environmental performance levy on automobile purchases).