Japan’s minivehicles or “kei” cars could lose their (next to their cuteness) biggest attraction: The tax benefit. The Japanese government is thinking about charging the same tax for regular cars and mini vehicles alike, The Nikkei [sub] writes.
An end to the favorable kei car tax treatment could be the price to pay for a new car tax system demanded by the Japanese automaker association JAMA. Japanese pay a multitude of taxes on their cars, and with the consumption tax doubling to 10 percent in 2015, automakers complain about double taxation.
An end to the favorable tax treatment of keis would please the Japanese auto importer association JAIA and the American Automotive Policy Council (AAPC) which demanded an end to the preferred tax treatment of keis. Japanese automakers already say that an end of the tax treatment also would mean an end of the keis.