Japan extends the duration of tax breaks for fuel-efficient vehicles

Article by Christian A., on December 12, 2011

Amid the economic challenges that Japan’s continues to face, its government has decided to extend the duration of tax breaks for fuel-efficient vehicles to show its support for automakers. Last Saturday, the outline of tax policies approved by cabinet members in Tokyo indicated that instead of expiring in April 2012, the program will now expire in April 2015.

The rebates for eco-friendly vehicles had expired in September but Japan has decided for them to resume for a year. Even a few hours before the outline was completed, the tax cuts and rebates for the auto industry were still being debated by the government and the ruling Democratic Party of Japan.

According to Finance Minister Jun Azumi, the country has to support the "key industry" of automobiles before thinking about reducing taxes. He said that Japan would also need to find a way to cut back on the losses in revenue. Before the release, Christopher Richter, an analyst at CLSA Asia-Pacific Markets in Tokyo, said that Japan holds the title of having the biggest public debt in the world.

He added that failing to offer sufficient support to the auto industry would be a “critical issue” for the economy as a whole in the future. The documents also revealed that requests to further reduce the levies on vehicles were turned down by Prime Minister Yoshihiko Noda.

The Japanese government made the decision to reduce the car weight taxes by 150 billion yen ($1.9 billion) after the Trade Ministry requested around 1 trillion yen of levy cuts. Last Nov. 15, Toshiyuki Shiga, head of the Japan Automobile Manufacturers Association, said that it is asking not just to reduce the tax burden but also to fight the strong yen, as well as “prevent a hollowing out and maintain domestic production.” [source: Bloomberg]

Topics: japan

If you liked the article, share on:

Comments

Recommended

Polestar is notably known to be Volvo's internal performance specialists, and around last year Polestar revealed to the public that it will utilize electrification to further advance the power of...
by - June 26, 2017
Earlier this month, Porsche introduced to us the 911 Turbo S Exclusive Series. The car wore a Golden Yellow Metallic paint. The same time it was launched, the company said...
by - June 26, 2017
Last month, the Lamborghini Centenario made its way to the Transformers: The Last Knight premiere where it got the attention of many. Following that event, three Lamborghini Centenario coupes landed...
by - June 26, 2017
The Holy Trinity of hypercars may not be accessible anymore after being discontinued, but that doesn’t mean we won’t see any more hypercars in the future. What we know is...
by - June 26, 2017
Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 25, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries