Background Paper – Japan Automobile Imports Association, Automobile - Related Taxes

In Japan, equal taxation system is applied to domestic automobiles and imported ones, which is also clearly seen in the fact that the completed automobiles are free from customs duty. However in Japan, automobile users have to perform heavy duties such as consumption tax and acquisition tax at the purchase, weight tax and automobile/mini-sized automobile tax during possession and fuel tax.

Tax Reform 

Tax has been reformed in response to various environmental problems caused by automobiles. The main tax reform is as follows; 

In FY 1999, reduction of automobile acquisition tax applied to energy efficient vehicles and lower polluting vehicles through a reduction of tax rates and a basic deduction from the acquisition price respectively. 

From FY 2000, preferential rates of automobile tax shall apply in Tokyo to clean energy vehicles and the lower polluting vehicles designated by seven local governments.

From FY 2001, penal rates shall apply to the vehicles which had been registered for over ten years (thirteen years for buses). 

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