Govt to propose new eco car tax

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Posted 9/20/10 , edited 9/20/10

Govt to propose new eco car tax

A study panel of Japan's internal affairs ministry is to propose a new tax designed to promote eco-friendly vehicles.

Under the current tax system, vehicle owners pay two different taxes -- one to the central government and the other to local governments.

A report compiled by the panel says the present system is too complex and that the two taxes should be combined. The panel proposes a new tax levied by prefectural governments on vehicles' carbon dioxide emissions. It says the new tax would help fight global warming.

The ministry has agreed to the proposal, saying that it would reduce the tax burden on people who buy environmentally friendly vehicles. The ministry will take the proposal to the government's tax commission for consideration.

The Japan Automobile Manufacturers Association says the proposed tax only replaces the auto tax for the central government, which it says should be abolished.

2010/09/20 13:14(JST)
(JST: UTC+9hrs.)
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