Japan’s finance ministry is considering imposing higher taxes on vehicles that are less fuel-efficient or not eco-friendly – a move that is expected to be challenged by the auto industry
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
”The basic idea is that taxes should be raised on vehicles that are considered worse for the environment,” senior vice finance minister Naoki Minezaki told reporters in Tokyo.
The government introduced tax breaks earlier this year for vehicles that meet government-set fuel efficiency and emission standards.
The Democratic Party of Japan (DPJ), which won power in the general election in late August, has pledged to eliminate provisional portions of vehicle-related taxes including the weight tax.
Minezaki suggested that the DPJ may adapt the tax system, depending on eco-friendly performances of vehicles while eliminating the provisional tax portions.
