THE MOTOR INDUSTRY OF JAPAN 2019

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110,00029,500Mini-vehicles(passenger carsfor private use)In tandem with the scheduled increase in the consumption tax rate to 10% in October 2019, reductions in the automobile tax on private-use passenger cars registered for the first time on or after October 1, 2019 will go into effect, to ease the tax burden on vehicle owners and help balance market demand prior to and following the consumption tax hike. In addition, a provisional reduction of 1% on the automotive environmental performance-based tax (see opposite page) will be accorded to private-use passenger vehicles, including mini- and used vehicles, purchased within one year from October 1, 2019, as a further measure to prevent the demand for automobiles, which are major consumer durables, from spiking before, and consequently plunging after, the increase in the consumption tax.Tax Reform Measures Implemented to Ease the Burden on Motor Vehicle Owners and Help Balance Demand before/after Consumption Tax HikeReductions (of which exact amounts are determined by engine capacity) in the automobile tax will be applied to all private-use passenger cars registered for the first time on or after October 1, 2019. These reductions, which are permanent, are the first to be applied across the board, to passenger cars of any engine capacity, since the establishment of Japan’s automobile tax regimen in 1950. Purchasers of a passenger car with an engine capacity of 2,000cc or less, for example, will enjoy a 10-15% tax break every year throughout their ownership of the vehicle.● REDUCTIONS IN THE AUTOMOBILE TAX (permanent tax cuts)Annual Automobile Tax Amounts Assessed,Current & Reduced (from October 1, 2019)¥25,000¥30,500¥36,000¥43,500¥50,000¥57,000¥65,500¥75,500¥87,000 ¥110,000 ¥29,500¥34,500¥39,500¥45,000¥51,000¥58,000¥66,500¥76,500¥88,000 ¥111,000 In yen120,000110,000100,00090,00080,00070,00060,00050,00040,00030,00020,00010,0000500015001000200025003000350040004500...60006500Engine capacity (cc)30,50036,00043,50050,00057,00065,50075,50087,000110,00025,00029,50034,50039,50045,00051,00058,00066,50076,50088,000111,00010,800Mini-vehicles(passenger carsfor private use)Automobile TaxPassenger cars (for private use)ReducedCurrentEngine capacityMini-VehicleTaxMini-VehicleTax Up to 1000cc1001 to 1500cc1501 to 2000cc2001 to 2500cc2501 to 3000cc3001 to 3500cc3501 to 4000cc4001 to 4500cc4501 to 6000cc Over 6000ccTaxesAuto Tax Reform Measures42