Japan's Automakers Call for Tax Reform in Japan; Consumers Face Nine Automobile-Related Taxes

WASHINGTON, March 25 -- Japanese automakers are urging Japanese government officials to simplify and reduce the auto tax burden on consumers. The Japan Automobile Manufacturers Association (JAMA) plans to submit a package of auto tax proposals this fall according to Japan Auto Trends, the JAMA newsletter released today.

Yoshihide Munekuni, Honda Chairman and JAMA Chairman said, "Domestic car users are at present saddled with a complex and excessively burdensome set of automobile taxes. Automakers want to enhance the overall rewards of vehicle ownership."

Japanese national and local governments receive more than 10 percent of their entire revenues from nine automobile related taxes. According to JAMA, polls show that 66 percent of consumers want reform. Furthermore, a less burdensome system would stimulate economic recovery in Japan.

"The Japanese consumer now pays a double tax on new cars totaling a whopping 10 percent. This is in addition to vehicle property taxes and an annual weight tax. Overall, the task is to reform the maze of taxes in a fair, simplified and environmentally friendly way consistent with practices in other countries," William C. Duncan, General Director, JAMA USA said.

The newsletter also focuses on international collaboration among automakers in the quest to develop a commercially viable fuel cell powered vehicle. Toyota Motor Corp., Nissan Motor Co., DaimlerChrysler and Ford Motor Co., along with 20 other Japanese, American, Canadian and German parts makers recently announced that they would jointly develop higher capacity fuel tanks.

Improved fuel tanks will mean that fuel cell vehicles would cover the same distances as gasoline powered vehicles before needing a fill up. The companies said they hoped to develop the technology by the end of 2005.

The newsletter's quarterly "Executive Highlights" features Takao Suzuki, JAMA President. According to Suzuki, the most important challenges facing JAMA are the globalization of the automobile industry and environmental and automobile safety issues.

Suzuki is working to bring together chief executive officers of the world's principal auto manufacturers to discuss harmonization and other issues during the Tokyo Motor Show this October.

"It is very important for the automobile companies to take on the enormous environmental, safety and other challenges and cooperate on a world level to achieve these goals for the benefit of the consumer," Suzuki said.

The newsletter also reports on the launch of a wide-ranging national campaign aimed at halting Japan's escalating car theft problem, which officials link to organized crime. The National Police Agency (NPA), JAMA, Customs and the Marine & Fire Insurance Association of Japan are spearheading the campaign. In 2001, NPA reported 63,275 thefts, a 13 percent increase over the previous year.

  Other stories featured in today's newsletter include:

  * Automakers enhance dealerships to boost sales;
  * Japanese vehicle sales forecast for 2003;
  * Testing of a fuel cell powered mini car and city bus;
  * Japanese vehicle consumers becoming more concerned with color.

Japan Auto Trends, the JAMA newsletter, examines developments in Japan's auto markets. This publication and all back issues are available on the JAMA web site, www.jama.org. JAMA, located in Tokyo, has offices in Brussels, Singapore and Washington D.C.