December 12, 2013

JAMA Comment on Japan’s Fiscal 2014 Tax Reform Plan

Akio Toyoda, Chairman, Japan Automobile Manufacturers Association, Inc

As part of its tax revision initiatives for fiscal 2014 (April 1, 2014-March 31, 2015), the Japanese government’s ruling coalition has decided to reduce the automobile acquisition tax and expand tax breaks on eco-friendly vehicles, among other measures designed to somewhat mitigate Japan’s heavy tax burden on automobile owners.  On this occasion, we would like to express our appreciation for the hard work of all those involved in these initiatives and reaffirm our intention, as automakers, to continue introducing products that appeal to consumers, in support of the revitalization of the domestic market.

On the other hand, we find it regrettable that the ruling parties have also taken the decision to raise taxes on motorcycles and mini-vehicles, although in the latter case the scope of the vehicles targeted for tax increases will be limited.

For its part, JAMA will continue to work not only for the definitive abolition of the automobile acquisition tax, effective from the time the consumption tax is raised to 10%, but also for the concurrent implementation of an automotive environmental performance tax incentive system that will genuinely lower the tax burden on vehicle owners.