With an eye on the potential growth of electric vehicle use in Japan, the government and ruling parties have begun discussions on a drastic overhaul of the car-related tax system, which is still mainly geared towards gasoline-powered vehicles .
The review was prompted by a “once-in-a-century period of change” in the car industry brought on by electrification and autonomous driving.
However, there is a backlash against a mileage-based driving tax that has been proposed to deal with the transition to electric vehicles, making it uncertain that the tax will actually be introduced.
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