How The Tax On Electric Vehicles Will Affect The Electric Car Market.
The road tax for electric vehicles without an engine is not considerable now a days ? But, the new tax policies globally will impact the electric car market. As the trend towards electrification accelerates worldwide, governments around the world are implementing various programs to support the spread of electric vehicles. There are also several tax incentives for green cars in Japan.
Though the tax incentives for green cars in Japan is applaudable, yet it is controversial. When buying an electric vehicle, you want to get the most out of it, but periods and conditions can be complicated. Below is an overview of taxes for the purchase and maintenance of electric cars from February 2022. Even if the car is not driven, you will only be taxed by registering the number. Taxes required to maintain a car include 'car tax', which is paid every year in May, and 'weight tax', which is levied on new car registration and vehicle inspection.
Ecological Load Deduction
When you buy a car, in addition to consumption tax, you will also be charged an "ecological load deduction" based on fuel consumption. Although this is a system equivalent to the conventional "car purchase tax", it will be converted to the current system from October 2019 and "0% to 3% (0% to 2% for light vehicles)" of the purchase price will be taxed. became. Since EVs are exempt from the "eco-performance ratio" tax, EV maintenance is subject to two taxes: "car tax" and "car weight tax".
EV road tax ( other than car weight tax ) will be collected from registered vehicles each year and the tax for that year is due in every May. Road tax is determined by "displacement", but an EV without an internal combustion engine is of course "zero displacement". However, this does not mean tax exemption and the lowest tax rate of "1.0L or less" applies. The standard amount of road tax for passenger cars is as follows.
New Rules
The classification varies depending on the first new registration date and in 2019 the amount of tax will change between "before 30 September" and "after 1 October". For example, the basic amount for electric vehicles newly registered after October 1, 2019 is 25,000 yen. However, from February 2022, a system called "Environmental Exceptions" has been introduced for car tax, which applies a reduced rate of tax to vehicles with excellent environmental performance.
Among the "vehicles newly registered between April 1, 2021 and March 31, 2023" eligible for the next fiscal year are EVs, FCVs (fuel cell vehicles), PHEVs (plug-in hybrid vehicles), and LPG (natural gas vehicles). Tax" will be "approx". 75% reduction. However, from February 2022, the "green car tax reduction" will apply to car weight tax. A vehicle with excellent environmental performance. For example, electric vehicles newly registered from May 1, 2021 and 4/30/2023 are completely exempt from weight tax in at the time of new registration and ongoing initial inspections (vehicle initial inspections).
Tax Exempt System
This is a tax-exempt system. This means that for electric vehicles, no weight tax is applied at the time of vehicle purchase and at its first inspection after three years. If you buy a new car and you continue to maintain it, the weight tax will be charged to you after the "second vehicle inspection" five years after the purchase. In addition, the following weight tax will be exempted for vehicles that are exempt from the green vehicle tax after the second vehicle inspection. In other words, the road tax for electric cars will be reduced to "¥6,500" one year after registration. allocation and to "¥25,000" each year thereafter.
Tokyo Metropolitan New Taxation
Road tax is paid to local governments and depending there may be other exceptions to the above as well. Currently, the Tokyo Metropolitan Government is implementing a tax system to support the introduction of ZEVs, which exempts all new-generation vehicles, including electric vehicles, registered by 2025 from road tax for five years. In addition, Aichi Prefecture has implemented a system that completely exempts registered new-generation vehicles from road tax for the year of registration and for the next five years until 2023.
For example, the road tax for standard mileage (RWD) of the Tesla Model 3 is very high. So, the weight tax for the second and additional vehicle inspection is 20,000 yen. Various tax credits, exemptions and subsidies are available for vehicles with excellent environmental performance, including electric vehicles. However, the implementation period and the scope of implementation may change in details, such as special provisions on greening and reduction of tax on green cars.
At the time of purchase, these provisions on greening and reduction of tax on green cars is counted. So, it is important to confirm "what discount can be applied at that time". First, we reconfirm the tax to be paid when owning a car (private car). With the increase in excise duty from October 2019, the car acquisition tax was abolished and an "environmental burden discount" was introduced when buying a car. Taxes related to ownership include "car tax" and "car weight tax".
Environmental Rebate
The tax rate for the environmental rebate is reduced by 1% to eliminate the burden after the increase in excise duty. Vehicles that exceed a certain fuel efficiency standard are exempt from the tax. Car weight tax: Payable when purchasing and inspecting the vehicle. The amount of tax varies depending on the weight of the vehicle. Road Tax: A tax paid annually by motor vehicle owners. The amount of the tax varies depending on the total displacement of the engine Road tax is a tax imposed on car owners from 1 April. From October 2019, the car tax imposed annually on car owners will be reduced for all engine displacements of new cars (passenger cars).
Important Note
Car tax is a one-off payment. This appears to be the first time that road taxes have been reduced for all transfers since the system was introduced in 1950. As the same amount of tax is collected from the second year onwards, the amount of tax is reduced throughout the holding period. The car tax must be paid annually by the end of May by deposit. Failure to make a payment for any reason is subject to a penalty of 1% for payments made within one month and 7.3% for payments made within one month.
So please be careful while making payments made within one month. (Defects deposit varies by region and time of year.) Recently, some local governments have started accepting credit card payments, so please check each local government's website. The process takes about two weeks to complete, but it's a big plus that you can pay at home before you forget and earn points. However, if your payment is late, you will not be able to pay by credit card, so please complete the process as soon as possible. So, the eco-friendly cars with excellent environmental performance can be exempted from car tax based on "Eco-Special Exemptions" Car tax has "Eco-Special Exemptions" which are reduced if certain environmental standards are met.
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