The Democratic Party of Japan-led government is considering extending the tax break for purchases of selected environment-friendly vehicles beyond next spring, lawmakers said Wednesday.
The DPJ's tax panel will formally ask the government for the extension this month as part of its request for tax changes in fiscal 2012, which starts in April.
Under its economic stimulus plan for fiscal 2009, the government introduced discount rates for the acquisition and weight taxes applicable to purchases of hybrid, electric and other low-emission cars.
The extension may come in a compromise deal. The Finance Ministry, which oversees tax collection, cannot accept applying the tax reduction to a wider range of vehicles as requested by automakers and the Ministry of Economy, Trade and Industry.