The Problem of High Automobile Taxes in Japan

Not long ago, Toyota President Akio Toyoda, who was appointed chairman of the Japan Automobile Manufacturers Association, Inc.I want all automobile taxes to be at the kei car level because Japan's automobile taxes are too high."The article was shared on the Internet, where it was publicly stated.

I want all taxes on cars to be the same as those on kei cars. Light cars are like public vehicles in rural areas, so I don't want to raise taxes on light cars. In additionFinally international standards by matching the taxes on regular cars with those on mini cars.becomes."

That was that. I see...! By the way, the current Japanese automobile tax as of August 2018 is as follows

(1) Private Passenger Vehicles
[Total displacement: Tax amount
Less than 1L: 29,500 yen
Over 1L to 1.5L or less: 34,500 yen
Over 1.5L to under 2.0L: 39,500 yen
Over 2.0L to under 2.5L: 45,000 yen
Over 2.5L to under 3.0L: 51,000 yen
Over 3.0L to under 3.5L: 58,000 yen
Over 3.5L to under 4.0L: 66,500 yen
Over 4.0L to under 4.5L: 76,500 yen
Over 4.5L to under 6.0L: 88,000 yen
Over 6.0L: 111,000 yen
(2) Light vehicles for private passenger use
[Total displacement: Tax amount
Flat rate: 10,800 yen

*Source: What are the annual automobile and light automobile taxes?

It sure is expensive.... Moreover, this tax is...It would be a little more acceptable if the money was used for something related to cars, such as highway renewal or measures to ease traffic congestion, but it is unclear how the money will be used.It seems. Also, compared to other countries, Japan's automobile tax is so high.

*Source: Akio Toyoda, Chairman of JAMA, "All automobile taxes are at the level of light cars! Japan is 31 times higher than the U.S.

That's about 2.4 times as much as the UK, 2.8 times as much as Germany, and 31 times as much as the US...!

Annual maintenance costs would be substantial.

In addition to the automobile tax, buying a car also entails maintenance costs such as parking fees, highway tolls, gasoline, insurance, and vehicle inspections. I have heard of people who bought a car but had to let it go. I once calculated the actual annual maintenance costs of a Boxster and a Panamera, and they were high and don't ((p.s.)).

→[Reference article] I calculated the annual maintenance cost of 981 Boxster GTS - gasoline, oil change, car insurance, fuel consumption, etc.
→[Reference article] What are the actual annual maintenance costs calculated for the new Panamera Turbo?

In that light, those who own cars now will be very happy to see lower automobile taxes.

Just... an article that says.If the tax burden on automobiles were reduced, the number of users who enjoy the car lifestyle could increase dramatically."However, the lower automobile tax will really reduce theWill people who do not currently own a car purchase a new one?

I've listed four reasons.

I suppose "high car taxes" could be one of the reasons people second-guess buying a car.I guess it's not that easy to get people to buy more cars when you lower their car tax.I gave several reasons why I thought this was a good idea.

(1) Japanese income is declining.

Statistics Bureau, Ministry of Internal Affairs and Communications, "Basic Survey of Employment StructureAccording to the "Mere Old Man," the median income of men in their early 40s who are in the prime of their working lives has decreased by about 500,000 yen compared to 25 years ago.The median income in 1992 was 5,241,000 and the median income in 2017 was 4,717,000.Since this is pre-tax income, it would be much lower in terms of take-home pay.*Source: Median income for men in their early 40s

Nevertheless, the number of dual-earner families is increasing.(I believe it is over 60% of all households)If you look at household income, it should be a lot more.For the mortgage on my home, for my children's education, for living expenses...and various money, and it is practically difficult to buy a car that costs several million yen.

By the way, my family isI don't want to buy a home, I just want to move into a rental property that fits my lifestyle at the time."It is.(Is no one interested?)

(2) Japan has a well-developed railroad network.

When I visited the U.S. the other day, I felt that Japan's railroad network is very well developed. I suppose it could be due to the small size of the country, but...There are many subways and JR trains in the city center, and the Shinkansen and limited express trains are faster and easier than a car for long distance travel across the prefecture.It is.

Moreover, when traveling by car in the city, it is difficult to find a parking space, and if you get caught in traffic jams, it is difficult to keep track of time. In addition, the cost of owning a car in the city is high, and it is expensive and inconvenient, so there are few advantages to owning a car.

(iii) Japan does not have a strong car (motorsports) culture.

Overseas, originally a horse-drawn culture, F1 and motorsports are far more popular than in Japan. Races held at circuits attract many spectators, and the races are often broadcast live on TV.They have a positive image of cars because they have a lot of exposure to cars.I think.

On the other hand, Japan has always been a country with a culture of "flying cars," and the image of the car as a luxury item remains strong. In addition, motor sports are rarely featured in sports programs, and there are very few opportunities for people to become familiar with cars or to come into contact with them.

4) Japan has few roads where cars can demonstrate their performance.

I've always thought thatDriving a Panamera Turbo on the roads of Japan, you can never quite get that performance out of it."The speed limit on the highway is 80 km/h.(Some have 110 km/h or so.(Soldier)There are also few straight lines.

Germany is about the same size as Japan, but has more plains.There is the Autobahn with its many straight lines and the Romantic Road, a pleasant ride through the plains.However, such roads are hard to come by in Japan, where there are many mountains and few plains. So, even if you buy a car with good performance, you will not have the opportunity to enjoy the fun of driving it.

...and that's just a little of what I've come up with, so I'm sure there are many more deep-rooted problems that will come up if we dig deeper.

althoughIn Japan, where incomes are falling, trains are the most convenient means of transportation, and car maintenance costs and taxes are high, it is difficult to see the benefits of owning a car.In Japan, a car has a strong meaning of "means of transportation," so a minicar or a minivan that can carry luggage would be sufficient for this purpose.

Domestic automakers also have cars that are fun to drive.

What is important for cars to become more popular in Japan than they are now? Motor journalists and car enthusiasts often askI wish Japanese car makers would develop cars that are more fun to drive."You have said that this may indeed be true.

For this, James May, one of the former hosts of the popular British car show Top GearWhy cars are so boring these days."This is what he had to say about the

Someone who doesn't like cars did the project.
Someone who doesn't like cars designed and
Someone who doesn't like cars, who develops them, who
Someone who doesn't like cars, does the test, and
Someone who doesn't like cars, who manufactures them, who
Someone who doesn't like cars did the inspections, and
Because someone who doesn't like cars sells them.

I see. Maybe this is exactly what applies to Japan today.

Japan's structural problems

And, ideally, I'd say... it's never going to happen, but..."If you buy a car, you're exempt from income tax, or you can buy a car with your hometown tax money.(something like this was... illegal)"If there were such a tax deduction system, I think more people would buy cars (laughs). Well, it's never going to happen.

The way the Japanese tax system works.The harder you work and the more you earn, the higher the rate of tax on your income and the more taxes you have to pay.

Also, unrelated to cars, but... although Japan is currently talking about measures to combat the declining birthrate...The more they work hard and have children together, the more they have to pay for daycare."It is a mechanism.

I know a working mother who has 3 children and she and her husband are making a lot of money, so they are in the zone of max monthly fees for a licensed daycare center.(since income tax and preschool fees are linked).It costs about 300,000 yen per month to send three children to daycare.

I work so hard, I spend less time with my children, and most of the money I earn goes to pay for daycare...I don't know what I'm working for if this is the case, and I might as well be a full-time housewife."He had previously said.

I know I'm way off topic, but I think it's great to have someone who loves cars at the top of the industry to implement reforms and initiatives, so please keep up the good work, President Toyoda, for the development of Japanese car culture! I wish you all the best!