Japan to increase tax breaks to inexperienced funding, low-emission vehicles

© Reuters. FILE PHOTO: A school student holds a sign as she takes part in the global students strike for action on climate change in Tokyo

By Tetsushi Kajimoto

TOKYO (Reuters) – Japan will extend tax breaks on low-emission cars and offer incentives to promote green investment to help Prime Minister Yoshihide Suga meet his carbon-neutral goal, according to the ruling bloc’s tax reform proposal to be approved on Thursday.

Suga has vowed to cut greenhouse gas emissions to zero in 2050, bringing Japan in line with the European Union and ahead of China’s pledge to achieve the same goal by 2060.

In a nod to Suga’s ambition, the ruling coalition’s tax reform proposal for next fiscal year will focus on steps to encourage corporate investment in green technology, lawmakers with knowledge of the deliberations said.

The proposal will also call for extending tax breaks on low emission cars and adopting incentives for next-generation lithium-ion batteries used in electric vehicles, they said.

The proposal, to be finalised by Suga’s ruling Liberal Democratic Party (LDP) and its ally Komeito Party later on Thursday, will serve as a platform for the government’s tax policies for the year beginning in April.

The ruling coalition will also call for steps to ease the blow from the coronavirus pandemic on households and businesses, such as an extension of tax breaks on mortgages and a lower levy for jet fuel, the lawmakers said.

The tax plan would follow Japan’s decision on Tuesday to compile a $708 billion economic stimulus package that features support for green and digital innovation.

Suga’s administration sees green innovation as a key area for Japanese business investment that could give the economy a much needed boost to emerge from a pandemic-induced slump.

While Japanese carmakers have seen sales rebound from the pandemic’s hit, they are laggards in the global race on development of electric vehicles.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Comments are closed.