Green tax breaks in Japan
The Japanese government is planning to offer 10-year tax incentives to boost mass production in five key areas, including the production of electric cars and making semi-conductor devices.
The country’s ruling Liberal Democratic Party will include the tax breaks in its 2024 fiscal year tax-reform framework, which is expected to soon be finalised.
Other sectors that might get the decade-long tax benefits include sustainable aviation fuels, and green steel and chemicals. The EV category also includes battery storage.
The tax breaks will include ¥400,000 – or about NZ$4,400 – for each EV, ¥30 per litre of sustainable aviation fuel and ¥20,000 for each tonne of green steel.
As for semi-conductors, companies will receive up to a 20 per cent break on the corporate income tax each financial year. For other categories, the tax break will be capped at 40 per cent.
