The ruling Democratic Party of Japan's tax chief has suggested a levy on vehicle purchases could be eliminated to help ease the negative impact of the planned consumption tax hike on the economy.
In response to calls from carmakers, the Ministry of Economy, Trade and Industry has proposed abolishing the automobile acquisition and weight taxes, a move that could boost vehicle sales and underpin an industry plagued with waning domestic demand and the strong's yen effect on exports.
"I think we may draw a clear line when the consumption tax increases to 8 percent (in April 2014)," Hirohisa Fujii, a former finance minister who heads the DPJ's tax research panel, said in an interview, referring to the possible elimination of the tax.