 |
CARS/TAXATION
POLICIES
source: eb.eiu.com
www.env.go.jp/en/rep/aret/ch3.html
|
|
Vehicle taxes in Japan are among the highest in the world and the focus is on environmental conservation… - passenger cars in Japan are subject to 9 taxes, imposed on acquisition, ownership, and operation. The taxes amount to US$73.6 billion per year, accounting for 1/10 of total government revenues. For environmental reasons, mini-cars are offered a preferential tax rate. In addition to annual registration fees, Japan assesses an annual tax on mini-cars, which in 2000 was equivalent to US$58, compared with US$278 for large vehicles;
- owners in Japan are generally required to have off-street parking for vehicles, which can add considerably to the expense of car ownership. The government also requires vehicles to be inspected for roadworthiness by an approved outlet every two years (or in the third year after purchase in the case of a new car), and this can cost upwards of ¥100,000 (around US$920) even before required repairs are undertaken;
- in FY 1975, the automobile acquisition tax on electric vehicles was lowered. Since then, the national government has taken a number of special taxation measures including expansion of types of vehicles subject to tax cuts and reduction of tax rates. Such measures were intended to promote environmental conservation in relation to automobiles;
- when a low-emission vehicle is purchased, the rate of automobile acquisition tax is reduced by 2.7% (in case of hybrid cars, the rate is lowered by 2.2%). In addition, when a low-emission vehicle is purchased, the owner can benefit from either one of the following tax reductions in income and corporate taxes: either extra depreciation of 30% during the initial year, or a 7% tax deduction;
- upon the purchase of a fuel-efficient vehicle, meeting the requirements of the fuel-efficiency standards set forth in the Energy Conservation Law, automobile acquisition tax is computed after deducting 300 thousand yen (about US$2,690) from the actual purchase price. This measure came into effect in FY 1999.
Norway is the world's third-largest oil exporter, behind Saudi Arabia and Russia. But no other major oil exporter has tried to reel in its own fuel consumption with as much zeal as Norway… - car owners in the United States may grumble as the price of gasoline hovers around US$2.25 a gallon. In Norway, drivers greeted higher pump prices of US$6.66 a gallon with little more than a shrug, according to a recent article in The New York Times. Gasoline taxes account for about 67% of the price. Having the world's highest gasoline prices is just one strategy to combat greenhouse gases in this redoubt of welfare capitalism and strict environmental laws. Knut Sandberg Eriksen, a senior research economist at the Institute of Transport Economics estimates the government collects about US$2.4 billion in fuel taxes alone each year, or about US$519 for every Norwegian. Some of the revenue supports Norway's social benefits; (1)
- Norway not only taxes its gasoline. Norwegians also pay automobile taxes as high as US$395 a year for each vehicle, and in Oslo there is even a ‘studded-tire’ fee of about US$160 for vehicles with all-terrain tires that tear up asphalt more quickly in the winter. Then there are the taxes on new passenger vehicles that can increase the price of imported cars (the country has no auto manufacturing industry aside from an experiment to produce electric cars). Norway designed the duties to make large-engine sport utility vehicles much costlier than compact cars. For instance, a high-end Toyota Land Cruiser that costs US$60,000 in the US might run as much as US$100,000 in Norway;
- economists argue that gasoline prices and other auto taxes in Norway are not so expensive when measured against the annual incomes of Norwegians, among the world's highest at about US$51,700 a person, or the shorter workweek of about 37.5 hours. (The government frequently makes such arguments when responding to criticism over high fuel prices.) However, these policies have resulted in Norwegians consuming much less oil per capita than Americans - 1.9 gallons a day versus almost 3 gallons a day in the United States- and low car ownership rates (437 per 1,000 people in 2004). On city streets and rural roads, fuel-efficient Volkswagens and Peugeots far outnumber big sport utility vehicles;
- fuel taxes in Norway are determined by carbon emissions, making diesel cheaper than petrol. Consequently, sales of diesel-powered cars have increased over the past few years. The increase in preference for diesel-powered cars jars with the government's attempts to encourage the use of environment-friendly electric cars. Electric cars have been exempted from all taxes, including the annual vehicle duty and VAT. Moreover, electric cars are not required to pay road tolls or parking fees in public car parks.
(1) Simon Romero, ”The $6.66-a-Gallon Solution”, The New York Times, April 30, 2005.
[www.nytimes.com/2005/04/30/business/worldbusiness/30norway.html?ex=1272513600&en
=39c8d0d14d251619&ei=5090&partner=rssuserland&emc=rss]
|
