Japan may consider tax increase on less fuel-efficient vehicles

A senior Japanese finance ministry official indicated the government will consider a tax increase for less fuel-efficient and other non-eco-friendly vehicles. “The basic idea is that taxes should be raised on vehicles that are considered worse for the environment,” Senior Vice Finance Minister Naoki Minezaki told a press conference. The Democratic Party of Japan, which won power in the general election in late August, has pledged to eliminate provisional portions of vehicle-related taxes including the weight tax. At the press conference, Minezaki also endorsed Deputy Prime Minister Naoto Kan’s proposal for regular meetings between the government and the Bank of Japan. (November 5, 2009)