Mexican Media Brands
Japan May Drop New-Car Purchase Tax
Japan's government appears close to a decision about lowering or eliminating its costly purchase tax on new vehicles, Bloomberg News reports.
#economics
Share
Japan's government appears close to a decision about lowering or eliminating its costly purchase tax on new vehicles, Bloomberg News reports.
The Japan Automobile Manufacturers Assn. is pushing hard for the cut. It wants help to offset Prime Minister Shinzo Abe's plan to hike the country's general sales tax from 5% currently to 8% next April and 10% a year later.
JAMA predicts the proposed general sales tax increase will deal a "lethal blow" to car sales unless consumers get relief from the nine separate taxes they now pay to buy and operate a car in Japan. The group estimates that an $18,000 new car incurs more than $20,000 in taxes over the first year of ownership.
The association complains that Japan's tax burden on passenger vehicles is nearly three times that of the U.K. and 47 times that of the U.S.
JAMA notes that the country's last general sales tax increase in 1997 was followed by a 1-million-unit drop in car sales. Year-on-year demand for passenger vehicles in Japan in 2013 plunged 14% in January-March and 8% in April-June, according to the association.
RELATED CONTENT
-
Global Car Market to Shrink for 2-3 Years
Global sales of light vehicles will decline year on year through at least 2021, predicts LMC Automotive at its annual outlook conference outside Detroit, Mich.
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
on the Genesis GV60 interior, EV sales in H1, Bentley Bentayga's wood work, Faurecia's advanced manufacturing & more
The strange glowing orb in the Genesis GV60. . .global EV sales in the first half. . .creating wood for the Bentayga interior. . .the importance of material handling at Faurecia. . .lux ATPs. . .fast Porsche. . .fast Lambo. . .the Avalon Hybrid. . .Silverado steel. . .