Tax system reforms

Committee:
Automobile
Published:
Japan has taken a two-year measure to ease drastic change for clean diesel passenger cars, which European carmakers have actively introduced to the Japanese market. However, Japan still imposes excessively heavy taxes on the purchase and ownership of automobiles compared with other countries.

Recommendations

  • Japan should simplify the structure of automobile taxation and further reduce the tax burden for users. The GOJ should further reduce automobile taxes and automobile tonnage taxes in order to secure fair taxation system between registered vehicles and kei-cars.
  • Japan should show the future direction of changes in tax systems and incentives on a medium- and long-term basis so that European vehicle importers can prepare for future changes.