A total of 21 automotive groups, including the Japan Automobile Federation (JAF), held a joint conference in Tokyo to send their message toward automobile tax reform.
In November, Japan’s automobile organizations already urged the government to terminate automobile acquistion and weight taxes (tonnage tax), while calling for new incentives to help sell environmentally friendly vehicles, after the current tax benefit system ends next year.
The Japan Automobile Manufacturers Association said Japan currently imposes nine car-related taxes totaling 2.4 to 49 times more in terms of monetary amount than those imposed in the United States and European countries for purchasing and keeping vehicles, noting the levies constitute double taxation that must be abolished.
“Automobiles are a lifeline for people today, but the extremely heavy load in maintaing them is placing large burden on users,” Japan Automobile Federation President Setsuo Tanaka told at a press conference in Tokyo.
The groups said abolition of the taxes would also help the auto industry maintain production and employment in Japan amid the strong yen, which has lowered Japanese automakers’ competitive power and even driven some toward collapse.
The organizations also called for fresh incentives for eco-friendly vehicles, which have been eligible for tax benefits under the current system that will expire at the end of this fiscal year.
A government program that reduces taxes levied on eco-friendly cars will likely be extended beyond sping next year, when it is currently scheduled to expire, according to sources.
The program, which reduces automobile acquistion and weight taxes on vehicles with high fuel efficiency, will likely be extended until fiscal 2013 or later, the sources said.
The government and the ruling Democratic party of Japan have plans to conduct a full-fledged review of the automobile acquisition and weight taxes in th future.
However, a greater priority in terms of tax reform forfiscal 2012 is discussions on a proposed hike in the consumption tax rate, the sources said.

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