Japan Set to Levy New Tax on Electric Vehicles: Heavier Vehicles, Heftier Taxes
1 week ago / Read about 0 minute
Author:小编   

Recently, the official website of Japan's Ministry of Finance unveiled the "Request Items for Tax System Reform in the 8th Fiscal Year of Reiwa Era." This document revealed that the tax burden tied to the weight of electric vehicles will be incorporated into the "greening of vehicle body taxation" reform initiative.

Commencing from May 2028, Japan will introduce a new tax on electric vehicles purchased for private use (encompassing both pure electric vehicles and plug-in hybrid electric vehicles). This tax will be implemented through a tiered mechanism, meaning that "the heavier the vehicle, the higher the tax amount."

The primary objective of this measure is to offset the revenue shortfall in fuel taxes resulting from the widespread adoption of electric vehicles. Additionally, it aims to ensure that heavier electric vehicles contribute their fair share towards road maintenance costs. Detailed provisions concerning this tax will be outlined in the 2026 tax system reform framework.

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