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Gov't eyes tax breaks for car buyers to offset impact of sales tax hike

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What happened to the plan to have a lower tax rate on food that the LDP agreed with Komeito? Has that been quietly dropped as the LDP know that their Komeito stooges will go along with whatever Abe says?

The point of raising the consumption tax is to collect more money. Why should car buyers get special treatment? If you can afford a car you can afford to pay the extra tax. You can always buy a second-hand car if the new ones are too expensive.

1 ( +1 / -0 )

Tax then give tax breaks. Am I missing something here? I agree with most comments here. We've reached imagination bankruptcy. This is a precursor to monetary bankruptcy...and there's the prospect we'll have this same government for another term.

No comment. Protecting home grown industries. Wait till uncle Donald gets a whiff of this.

1 ( +1 / -0 )

TAX TAX TAX - The peoples daily bread, should not be taxed.

1 ( +1 / -0 )

This is so dumb. They should abolish kei-cars. They're a third of the entire market, and buyers and owners enjoy a range of financial privileges that no one else gets. Give all motorists the same "privileges" instead, ie, remove the artificial costs of owning a regular car.

Kei is a unique Japanese technical standard that Europe and others say is a barrier to market entry. Its discriminatory pure and simple.

0 ( +0 / -0 )

Use public transport to travel

0 ( +0 / -0 )

Everyone is talking about the Shaken while forgeting the annual car tax which every car owner is obliged to pay regardless of whether the car is for commercial purpose or for commuting.

Where all those who were lambasting the democratic party as a failure during their short rule for trying to rein on government waste. One could travel from osaka to tokyo by car during holidays and weekends for 2,000yen. Abe didn't only abolish the cheap tolls but increased it.

The sheepie population is reaping what it sowed.

1 ( +2 / -1 )

I just shared this information with my life and she laughed ruefully while saying that unless cars become edible this will only hurt the majority of Japan. She then shrugged her shoulders and rhetorically asked what else could we expect from a man who was born with a silver spoon in his mouth, married another rich person and doesn’t have any children of his own.

5 ( +5 / -0 )

and increase parking fines, and increase parking fees in cities

0 ( +2 / -2 )

No no no! Tax car buyers and owners much much higher, SG level please

Use the money to improve public transport, shielded bus stops with seating for elderly, bike lanes and so on...

Why this pandering to the auto lobby disguised as a benefit even needed.

1 ( +2 / -1 )

Yep....more money for the giants of J- inc etc....what people would really benefit from is reduced or no sales tax on food, baby stuff, medicine...etc just like you find in other countries with higher sales tax that LDP always like to point to for comparisons ( funnily enough the LDP experts ' never touch on the fact of reduced rate or no tax items , only keep on blabbing on about how Japan,s tax rate is low in comparison , - selective truth at its best ).

However, the LDP knows that regardless of them slamming the average Taro with a sales hike ( proceeds of which , regardless of promises made, will be squandered on increasing military budgets and pork barel spending for cronies before the next election ) the sheeple will go to the next ballot box and re elect the same LDP thief oyajis that are robbing them once again. If there was a danger of LDP loosing seats over the hike you can bet your barn there would suddenly be much more public friendly options re the reduced rate on necessities and such. Alas the sheeple are predictable and hence will get screwed by LDP once again.

Now, lets hear from our resident LDP cheerleaders about how economy was never better, everyone is doing just dandy and the tax hike by the almighty Shinzo is justified.

6 ( +6 / -0 )

How about reducing those insane highway tolls and the excessively expensive car inspections too?

largest expense for most car owners in Japan is parking costs can be around 2^30000yen/mo in major cities. If you a car lover like me and mechanically minded it worth doing your own shaken. Having a mechanic do it for you can add an extra 30~100,000 on top of the cost. I live in a semi rural area so I have parking for 5 cars on my property so save considerably on parking. Currently own 4 cars and have for the last 7 yrs have never owned less than 3 cars while Ive been in Japan. Used cars are dirt cheap in Japan and the milage low compared to other countries. If you can buy directly form the car auctions you can save considerably also.

1 ( +2 / -1 )

In 1997 when the sales tax was raised from 3% to 5% the following promises were made. “It is to protect the Social Security safety net. All money will go to this cause. This will be the only time we raise this tax.”

Immediately following that promise, the following observation was made by a number of regular people. “Raising this tax will hurt Japan irreparably. Living in Japan is too expensive to raise the sales tax. Doing so will deter people from marrying because wages are stagnant and the women will not marry men who do not make significantly more money than their fathers and men do not want to repeat their father’s lives of hard work for even less money. Those who do marry will have fewer children. But as time goes on, fewer people will marry which means the government will raise taxes again because now they have a precedent.”

In 2018, these words look prophetic.

8 ( +8 / -0 )

Hahaha, Japanese made cars only. Smart Asso.

1 ( +1 / -0 )

"Taxpayers to provide corporate welfare to auto industry under government proposal". There, fixed your tagline,

6 ( +6 / -0 )

kohakuebisuToday 08:24 am JST

What they should tax more is gasoline. It is an easy way of taxing pollution, and will encourage more people to buy cars that can go the same distance on less gasoline. An Estima hybrid will go 30% further on the same tank of fuel as a car basically identical to an Estima. Only electric cars should pay the high ownership taxes we have now.

So tax pollution by raising tax on fuel, but keep high ownership taxes for electric vehicles? The government is attempting to make the roll out of electric vehicles cheaper, not more expensive. Why would they think your suggestion is worthy of consideration?

2 ( +2 / -0 )

@zatoizugoodo - Tax break or not, it's still too expensive to own a car here. How about reducing those insane highway tolls and the excessively expensive car inspections too?

The thing that makes owning a car so expensive is renting a parking space, especially in the cities. In some areas of Tokyo a parking space can cost you 500 bucks a month or more. I live in the burbs and rented a houses with a car parking space

The cost of registration (shakken) is a rip off due to there being so many entities with their fingers in the pie. However, if you are in the know (like me) shakken costs around ¥70,000 for two years, which is what I pay for my Stepwgn. You can do most of it yourself. Walking into Autobacks or one of the other auto stores and requesting shakken is the norm for most people and they just rip people off blindly

Used car yards are just a rip off in Japan. The prices they ask are heavily inflated on auction price and then add ¥200,000 for shakken is Just money for nothing.

This tax break they are talking about will most likely only apply to new cars. I’ve lived in Japan for getting on two decades and there are a lot more older cars on the roads now than there were 15 years ago. Cars that were older than ten years were quite rare. However, it is very common to see 10-15 year old cars on the roads these days.

Buying and owning a car in Japan can be a rip off, but if you ask around and get to know a few people it is actually much cheaper than other countries, especially if you can get around renting a car parking space. For example, my car is a 2010 Honda Stepwgn, which I paid ¥300,000 for three years ago with a full two years shakken (3 grand only). I put two years shakken on it last October that cost ¥76,000 - not ¥176,000.

This tax cut they are talking about not be necessary if car dealers and car parking renters would not ripping people off with money for nothing.

-1 ( +0 / -1 )

Abe has to keep his corporate overlords happy. So we will see tax breaks for cars, big scale construction projects and the like. Reduce tax on food? Are you crazy, only the little people are worried about that, and in Abe's world, they don't really count.

10 ( +10 / -0 )

So true mu-da. What about a 4% tax for basic stuff like food? Poorest people can't afford a car anyway, but they would benefit from tax reliefs in food, city taxes, or even public transportation. But the government is more interested on tax breaks for big automakers, because that's were friends are isn't it?

I can't believe Japanese keep voting them.

8 ( +8 / -0 )

I agree with the above about the road tax and second road tax (the shaken weight tax). Car ownership is too expensive. It is taxing access to the roads, something paid for by other taxation.

What they should tax more is gasoline. It is an easy way of taxing pollution, and will encourage more people to buy cars that can go the same distance on less gasoline. An Estima hybrid will go 30% further on the same tank of fuel as a car basically identical to an Estima. Only electric cars should pay the high ownership taxes we have now.

1 ( +3 / -2 )

How about tax breaks for food?? The Abe government never thinks about the needs of the people. Worst government by far since I entered this country in 1972.

11 ( +11 / -0 )

It points to the cost of consumers as well

2 ( +3 / -1 )

@zatoizugoodo, couldn't agree more.

The story, though, points to trade wars.

0 ( +0 / -0 )

Tax break or not, it's still too expensive to own a car here. How about reducing those insane highway tolls and the excessively expensive car inspections too?

12 ( +13 / -1 )

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