THE MOTOR INDUSTRY OF JAPAN 2019

42/68

To help expedite the shift to low-carbon road transport in the interest of curbing global warming and to help improve air quality, the Japanese government has, since April 2009, applied auto-related tax incentives to promote the wider use of eco-friendly vehicles. Updated incentives and eligibility requirements came into effect in April and May 2019 and their effective periods were extended for two years with the exception of the incentives for the acquisition tax, which were extended for six months until October 2019, when the acquisition tax is to be abolished in tandem with the scheduled rise in the consumption tax.Tax Incentives to Promote the Wider Use of Eco-Friendly Vehicles(1) An initial inspection is mandated for a new vehicle purchase; exemption at the time of first vehicle inspection post-purchase applies only when the new inspection certificate is issued within 15 days following expiration of the old certificate. (2) For vehicles compliant +90% with 2020 fuel efficiency standards, exemption applies on initial inspection mandated for new vehicle purchase and at the time of first vehicle inspection post-purchase (only when the new inspection certificate is issued within 15 days following expiration of the old certificate).INCENTIVES & ELIGIBILITY REQUIREMENTS● ACQUISITION AND TONNAGE TAX REDUCTIONS/EXEMPTIONSPeriod in effect: April 1, 2019 through September 30, 2019 for the acquisition tax; May 1, 2019 through April 30, 2021 for the tonnage tax.• Electric vehicles • Fuel cell vehicles• Natural gas vehicles (with NOx emissions down by 10% from 2009 emission standards, or complying with 2018 emission standards)• Plug-in hybrid vehicles• Clean diesel passenger cars (complying with 2009 or 2018 emission standards)+10%25%reduction+20%+30%+40%+90%Compliant20%reduction@ Initial vehicle inspectionTonnageTaxAcquisition Tax@ Initial & first vehicle inspectionsTonnageTaxAcquisition TaxExempt (1)Exempt2020 Fuel Efficiency StandardsFuel efficiencyEmissions level25% reduction50% reduction50% reductionDown by 75% from 2005 standards or Down by 50% from 2018 standardsExemptExempt (2)Reductions/ExemptionsTax Category1. Passenger CarsRequirementsGasoline vehicles/LPG vehicles (including hybrids)• Electric vehicles • Fuel cell vehicles• Natural gas vehicles (with NOx emissions down by 10% from 2009 emission standards, or complying with 2018 emission standards)• Plug-in hybrid vehicles+5%20%reduction+10%40%reduction+15%60%reduction50%reduction+20%80%reduction75%reduction+25%ExemptExempt@ Initial vehicle inspectionTonnageTaxAcquisition Tax@ Initial & first vehicle inspectionsTonnageTaxAcquisition TaxExempt (1)Exempt2015 Fuel Efficiency StandardsFuel efficiencyEmissions level25% reductionDown by 75% from 2005 standards or Down by 50% from 2018 standardsReductions/ExemptionsTax Category2. Small Trucks and Buses (GVW≤2.5t)RequirementsGasoline vehicles(including hybrids)• Electric vehicles • Fuel cell vehicles• Natural gas vehicles (with NOx emissions down by 10% from 2009 emission standards, or complying with 2018 emission standards)• Plug-in hybrid vehicles@ Initial & first vehicle inspectionsTonnage TaxAcquisition TaxExempt (1)Exempt2015 Fuel Efficiency StandardsFuel efficiencyEmissions levelDown by 75% from 2005 standards or Down by 50% from 2018 standardsDown by 50% from 2005 standards or Down by 25% from 2018 standardsNOx and PM emissions down by 10% from 2009 standards or Compliant with 2018 emission standardsCompliant with 2009 emission standardsReductions/ExemptionsTax Category3. Mid-Sized Trucks and Buses (2.5t GVW≤3.5t)RequirementsGasoline vehicles(including hybrids)Diesel vehicles(including hybrids)+5%50% reductionNo incentive50% reductionNo incentive+10%75% reduction50% reduction75% reduction50% reduction+15%ExemptExempt75% reductionExemptExempt75% reduction@ Initial vehicle inspectionTonnage TaxAcquisition Tax@ Initial vehicle inspectionTonnage TaxAcquisition Tax@ Initial vehicle inspectionTonnage TaxAcquisition Tax@ Initial vehicle inspectionTonnage TaxAcquisition Tax• Electric vehicles • Fuel cell vehicles• Natural gas vehicles (with NOx emissions down by 10% from 2009 emission standards)• Plug-in hybrid vehicles@ Initial & first vehicle inspectionsTonnage TaxAcquisition TaxExempt (1)Exempt2015 Fuel Efficiency StandardsFuel efficiencyEmissions levelNOx and PM emissions down by 10% from 2009 standards or Compliant with 2016 emission standardsReductions/ExemptionsTax Category4. Heavy-Duty Trucks and Buses (GVW 3.5t)RequirementsDiesel vehicles(including hybrids)+5%50% reduction+10%75% reduction+15%ExemptExempt@ Initial vehicle inspectionTonnage TaxAcquisition TaxTaxesTax Incentive Measures for Eco-Friendly Vehicles40