Japanese Consumers Will Get Tax Break on Hybrids and Electric Cars

Here is a great idea; Give the buyer a much needed tax break. Japan will now let hybrid and electric car buyers receive a waiver on all taxes associated with the purchase. The United States offers consumers a tax refund instead of a tax break. The difference is in the financing of the automobile. The total price of the automobile in Japan would be roughly $1,600 less as opposed to the US, where the buyer usually has to finance the taxes. I like the Japanese model, how about you?

From Nikkei:

Normally, people purchasing new cars pay the automobile acquisition tax, which is equivalent to roughly 5% of the car’s price, and three years’ worth of the weight tax. This means a person buying a 2 million yen [US$21,700] car that weighs 1.3 tons has to pay a total of 146,700 yen [US$1,600] in taxes.

If the car is a hybrid or an electric vehicle, the taxes will be waived completely starting in April if the bill takes effect as planned. Other types of environmentally friendly cars will also receive 50-75% tax reductions depending on their fuel economies and exhaust emissions.