TOKYO, Dec 16 (Reuters) – 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.
The government will also raise corporate, income and tobacco taxes to pay for a scheduled doubling of Japan’s defence spending to 2% of gross domestic product (GDP) by 2027 – a response to an increasingly assertive China and North Korea’s missile launches.
Below are key changes under the revised tax code, according to a draft of the document obtained by Reuters. The revised code will take effect in the next fiscal year beginning in April 2023, upon approval by parliament.
AUTOMOBILE TAX
Japan will extend tax breaks on low-emission cars past the end of 2023, while increasing the required level of emissions reduction for eligible vehicles in several stages from 2024. The revision,…
