The Japanese Government is planning to cut taxes for those whose cars meet new emission regulations, says Associated Press/Kyodo News (17/8/00) quoting Government sources.

The tax-cuts, in a draft plan jointly mapped out by the Ministry of Transport, the Ministry of International Trade and Industry and the Environment Agency, would vary from 10% to 20%, depending on how deeply the vehicles had reduced their harmful exhaust agents.

The tax cuts, expected to come into effect from next April 1, would apply to 'green' automobiles for three years from the time of their purchase, says the draft. The cuts would be applied to those customers who have purchased ultra-low emission cars including hybrid and electric cars alongside cars powered by natural gas.

The report says the owners of buses and trucks - in environmentally sensitive areas with strict nitrogen oxide regulations - who replace their vehicles with those that meet the emission regulations will be given a 20% reduction on their automobile taxes.

A tax reduction of 10% would also be available to owners of highly fuel-efficient vehicles that meet certain emission regulations, says the article.