Tax reform

Committee:
Automobile
status:
Progress
Published:
Eco-car Tax Incentives and the Automobile Tax Environmental Performance Levy will remain unchanged until the end of 2023 and so will the current preferential treatment for EVs, etc. for the next three years.

Recommendations

  • The penetration of electric vehicles (EV) in Japan is currently at a low level. We need to accelerate the spread of xEVs that will contribute to achieving carbon neutrality. System reforms that increase the burden on users should be avoided. We would like to request consideration of tax reform to accelerate the spread of xEVs such as EVs, PHEVs, and FCEVs.
  • Car users in Japan are subject to excessive and complex taxes compared to other countries. We request to simplify automobile-related taxes and drastically reduce the burden on users.