On December 16, the Japanese government, along with the ruling party, declared a revision to the automobile-related tax framework on the very same day. They plan to introduce a new tax on privately owned pure electric vehicles (EVs) from May 2028 onwards. The revamped tax system is built on the principle of "heavier vehicles, higher tax," and this new levy will be imposed in addition to the current automobile weight tax. This initiative is designed to tackle the increased strain on roads due to the weightier bodies of EVs and to bridge the funding shortfall for road upkeep.

Besides pure electric vehicles, plug-in hybrid vehicles also fall within the scope of this new taxation. The updated regulations will come into effect for vehicles undergoing inspection after May 1, 2028.

Data reveals that among the EVs sold in the Japanese market, imported models typically have heftier bodies. Moreover, there's a direct positive relationship between the price and weight of high-end EVs. Consequently, it's anticipated that high-end models will face higher tax burdens. This policy has been incorporated into the recently finalized 2026 tax reform outline.