Eco-Car Tax Break and Subsidies for Vehicles

With the Eco-Car Tax Break, clean energy vehicles enjoy a tax reduction/exemption with respect to three vehicles taxes: motor vehicle tonnage tax, automobile acquisition tax and motor vehicle tax (ownership). Eligible vehicle types include high fuel efficiency internal combustion engine vehicles, electric vehicles, fuel-cell powered vehicles, plug-in hybrid vehicles, natural gas vehicles and clean diesel passenger vehicles. 

 
Starting from January 2024, vehicles that achieve 80% of Japan's energy-saving target will receive a 50% tax reduction, while those achieving 70% will receive a 25% tax reduction.

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