Factbox: Japan tax reform to target low-emission cars, shift to investment

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Japan will extend tax breaks on low-emission cars and seek to shift its massive household savings into investment in the government's annual tax code revision to be approved on Friday.

corporate, income and tobacco taxes to pay for a scheduled doubling of Japan's defence spending to 2% of gross domestic product by 2027 - a response to an increasingly assertive China and North Korea's missile launches.

The government will also exclude gasoline-powered cars beginning in 2025 from tax cuts that were granted to the automobile sector to help it overcome supply constraints.Under his flagship "new capitalism" initiative aimed at redistributing income, Prime Minister Fumio Kishida has sought to shift Japan's 2,000 trillion yen in household assets away from savings and into investment.

As part of efforts to narrow income disparities, the government will apply higher capital gains tax rates for households with annual income above 3 billion yen.Kishida's administration has stressed the need to nurture more start-ups that could give a boost to Japan's anaemic economic growth.

 

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Where will they get electricity for cars? Fuel is needed to generate electricity. Lots of fuel!

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