“I want to align all car taxes with those of kei cars. Kei cars are almost like public transportation in rural areas, so raising their taxes is out of the question. Also, by matching regular car taxes to kei car levels, Japan would finally meet international standards.<\/strong>“<\/p>\n That was the gist of it. Interesting…! For reference, as of August 2018, Japan\u2019s automobile taxes are as follows: <\/p>\n \u2460 Private Passenger Cars<\/span><\/strong> *Source: What are annual automobile and kei car taxes?<\/span><\/a><\/p>\n Indeed, these taxes are high… Moreover, if these taxes were used for things related to cars, like highway renovations or congestion relief measures, it might be somewhat justifiable, but apparently the actual use of these funds is unclear.<\/strong> Compared internationally, Japan\u2019s car taxes are extremely high. <\/p>\n *Source: Akio Toyoda, Chairman of JAMA, says “All car taxes should be at kei car levels!” Japan\u2019s tax is 31 times that of the US<\/a><\/span><\/p>\n About 2.4 times higher than the UK, 2.8 times higher than Germany, and 31 times higher than the US…!! <\/p>\n Besides automobile tax, owning a car involves other costs such as parking fees, highway tolls, fuel, insurance, and inspection fees. I\u2019ve heard stories of people having to give up their cars because of these costs. Previously, I calculated the actual annual maintenance costs for a Boxster and a Panamera, and was shocked at how expensive it was ((\uff1b\uff9f\u0414\uff9f)). <\/p>\n \u2192[Reference] Calculated the annual maintenance cost of a 981 Boxster GTS \u2014 fuel, oil changes, insurance, fuel efficiency, etc.<\/a> Given this, it\u2019s very welcome news for current car owners if automobile taxes are lowered. <\/p>\n However… one article said “If the tax burden on cars decreases, the number of users enjoying car life might suddenly increase,”<\/strong> but I wonder if lowering car taxes will really lead to people who don\u2019t currently own cars deciding to buy one?<\/strong> <\/p>\n While \u201chigh car taxes\u201d can be one reason people hesitate to buy cars, I think lowering car taxes alone won\u2019t be enough to significantly increase car purchases.<\/strong> Here are some reasons I thought of: <\/p>\n According to the Ministry of Internal Affairs and Communications\u2019 \u201cBasic Survey on Employment Structure<\/a>,\u201d the median income of men in their early 40s, the prime working age, has dropped by about \u00a5500,000 compared to 25 years ago. The median income was \u00a55.241 million in 1992 and \u00a54.717 million in 2017.<\/strong> This is pre-tax income, so take-home pay is even lower. *Source: Median income of men in early 40s<\/span><\/a><\/p>\n That said, dual-income households have increased (now over 60% of all households)<\/span>, so household income should be higher, but with mortgage loans, children\u2019s education expenses, and living costs, buying a car that costs several million yen is realistically difficult. <\/p>\n By the way, my family follows the principle of “not buying a home but moving to rental properties that fit our lifestyle at the time.”<\/strong> (Though probably no one cares)<\/span> <\/p>\n During a recent trip to the US, I realized how developed Japan\u2019s rail network is. The country\u2019s small size helps, but in urban areas, many subways and JR trains operate, and for long-distance travel across prefectures, the Shinkansen and limited express trains are faster and more convenient than driving.<\/strong><\/p>\n Also, driving in cities means struggling to find parking, getting stuck in traffic with unpredictable delays, and paying high parking fees. This makes owning a car expensive and inconvenient, reducing its appeal. <\/p>\n Overseas, there is a strong horse-drawn carriage heritage, and motorsports like F1 are far more popular than in Japan. Races held at circuits attract large crowds and are frequently broadcast on TV, so people have many opportunities to engage with cars and tend to have a positive image of them.<\/strong><\/p>\n In contrast, Japan\u2019s traditional courier culture and the lingering image of \u201ccars = luxury items\u201d persist. Motorsports rarely feature on sports programs, and opportunities to get close to or experience cars are very limited. <\/p>\n I often think that “Even if I drive a Panamera Turbo on Japanese roads, I can\u2019t fully unleash its performance.”<\/strong> The engine usually runs around 1000 rpm, and I sometimes worry the Panamera might just fall asleep… haha. Speed limits on highways are mostly 80 km\/h (some parts might allow 110 km\/h)<\/span>, and there are few long straight roads.<\/p>\n Germany has almost the same land area as Japan but has many plains, allowing for high-speed driving on the Autobahn or scenic drives like the Romantic Road. Japan\u2019s mountainous terrain and limited plains mean such roads are rare. So even if you buy a high-performance car, chances to enjoy its driving pleasure nearby are scarce.<\/p>\n …These are just a few reasons off the top of my head, and digging deeper would reveal even more complex issues. <\/p>\n Still, it\u2019s true that “with declining incomes, convenient train transportation, and high car maintenance and tax costs, it\u2019s hard to feel the benefits of owning a car in Japan.”<\/strong> Since cars in Japan are mainly seen as a means of transportation, many feel that kei cars or minivans with ample cargo space are sufficient. <\/p>\n What\u2019s important for cars to become more popular in Japan? Many motor journalists and car enthusiasts often say that “Japanese automakers should develop cars that are more fun to drive.”<\/strong> That might indeed be true.<\/p>\n On this topic, James May, one of the hosts of the once-popular British car show “Top Gear,” explained “Why modern cars are boring.”<\/strong> <\/p>\n People who don\u2019t like cars plan them,<\/em> Makes sense. This might very well apply to Japan today. <\/p>\n Ideally… though it will never happen, “if buying a car exempted you from income tax, or if you could buy a car using hometown tax donations (I think something like this existed… but maybe it was illegal)<\/span>,”<\/strong> such tax incentives might increase car purchases (laughs). But that\u2019s absolutely unlikely.<\/p>\n Japan\u2019s tax system means the more you earn, the higher your income tax rate, so you end up paying more taxes.<\/strong><\/p>\n Also unrelated to cars, although Japan talks about countering the declining birthrate, “working hard in dual-income households and having more children means paying huge daycare fees.”<\/strong><\/p>\n A working mother I know has three children, and because she and her husband both earn well, their authorized daycare fees are at the maximum level (daycare fees are linked to income tax).<\/span> Putting three kids in daycare costs about \u00a5300,000 per month, so<\/p>\n “Working hard means less time with my children, and much of my earnings go to daycare fees… I sometimes wonder why I\u2019m working at all and if it might be better to be a full-time housewife,”<\/strong> she once said.<\/p>\n I\u2019ve gone off-topic, but I think it\u2019s great that a car enthusiast like President Toyoda is leading the industry and pushing reforms. President Toyoda, please keep up the great work for the development of Japan\u2019s car culture!\u30fd(\uff9f\u0434\uff9f)\u30ce<\/p>\n","protected":false},"excerpt":{"rendered":"The Problem of High Automobile Taxes in Japan A while ago, Akio Toyoda, President of Toyota and newly appointed chairman of the Japan Automobile Manufacturers Association, publicly stated that “Japan\u2019s automobile taxes are too high, so I want to reduce all car taxes to the level of kei cars.” This statement was widely shared online. “I want to align all car taxes with those of kei cars. Kei cars are almost like public transportation in...","protected":false},"author":0,"featured_media":4237,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_locale":"en_US","_original_post":"https:\/\/www.panamera-life.com\/?p=4165"},"categories":[2],"tags":[],"yoast_head":"
\n[Engine Displacement: Tax Amount]<\/strong>
\nUp to 1.0L: \u00a529,500
\nOver 1.0L to 1.5L: \u00a534,500
\nOver 1.5L to 2.0L: \u00a539,500
\nOver 2.0L to 2.5L: \u00a545,000
\nOver 2.5L to 3.0L: \u00a551,000
\nOver 3.0L to 3.5L: \u00a558,000
\nOver 3.5L to 4.0L: \u00a566,500
\nOver 4.0L to 4.5L: \u00a576,500
\nOver 4.5L to 6.0L: \u00a588,000
\nOver 6.0L: \u00a5111,000
\n\u2461 Private Kei Cars<\/span><\/strong>
\n[Engine Displacement: Tax Amount]<\/strong>
\nFlat rate: \u00a510,800<\/p>\n![\"\"](\"https:\/\/www.panamera-life.com\/wp-content\/uploads\/2018\/08\/20180604_jama_009-800x533.jpg\")
<\/p>\nAnnual Maintenance Costs Are Quite Significant<\/h3>\n
\n\u2192[Reference] Calculated the actual annual maintenance cost of the new Panamera Turbo \u2014 what was the result?<\/a><\/p>\nFour Reasons I Came Up With<\/h3>\n
\u2460 Japanese Incomes Are Declining<\/h4>\n
\u2461 Japan Has a Well-Developed Rail Network<\/h4>\n
\u2462 Japan Lacks a Deep-Rooted Car (Motorsports) Culture<\/h4>\n
\u2463 Japan Has Few Roads to Fully Enjoy Car Performance<\/h4>\n
Domestic Automakers Should Also Make Cars That Are Fun to Drive<\/h3>\n
\nPeople who don\u2019t like cars design them,<\/em>
\nPeople who don\u2019t like cars develop them,<\/em>
\nPeople who don\u2019t like cars test them,<\/em>
\nPeople who don\u2019t like cars manufacture them,<\/em>
\nPeople who don\u2019t like cars inspect them,<\/em>
\nPeople who don\u2019t like cars sell them.<\/em><\/p>\nStructural Issues in Japan<\/h3>\n