Japan Could Increase Taxes On EVs To Combat Falling Revenue | Carscoops

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Japan Could Increase Taxes On EVs To Combat Falling Revenue | Carscoops carscoops

is expected to collect 1.5 trillion yen in the 2022 fiscal year because of its taxes on cars. This money is important in the upkeep of roads but has fallen 14 per cent since its peak in fiscal year 2002.is concerned the shift to EVs will further reduce this revenue source, noting that as EVs generally weigh more than combustion-powered vehicles and put a greater burden on local roads. The Ministry of Economy, Trade and Industry has opposed tax increases that could slow EV demand in Japan.

Japan’s Ministry of Finance is also looking for ways to counteract an expected drop in gasoline tax revenue and may introduce a tax based on driving distance.

 

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