On December 22, Asahi Shimbun reported that the Japanese government is planning to implement a weight-based taxation system for electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) starting in 2028. The specific tax rates are scheduled to be finalized in 2026. As of May 2028, a new tax category, dubbed the "Electric Vehicle Weight Tax," will come into effect, applying to both pure EVs and PHEVs. This new tax will be an addition to the existing "Automobile Weight Tax," which is currently paid during annual vehicle inspections.
Government officials have indicated that the tax rates will be set by referencing the average gasoline tax paid by owners of traditional fuel-powered vehicles. Generally, the heavier the electric vehicle, the higher the tax rate will be. Furthermore, electric vehicles will also see an increase in their annual automobile taxes. Presently, this tax is calculated based on engine displacement, with electric vehicle owners paying the least due to their lack of an internal combustion engine. However, starting from the fiscal year 2028, the tax will be recalculated based on the weight of the electric vehicle.
