Japan weighs revamping auto tax as luxury EV offerings expand

TOKYO — The Japanese government is starting to explore revisions to the automobile tax, aiming to make it more fair as luxury electric vehicles proliferate and bear little of the burden.

Forty-four of the EV models sold in fiscal 2024 were priced at 10 million yen (about $70,000) or higher before taxes, the Ministry of Internal Affairs and Communications explained at an expert panel meeting this past Wednesday. The tally was up nearly 80% from fiscal 2022.