Japan auto lobby opposes plan to tax mileage of electric vehicles

TOKYO (Reuters) -A Japanese automobile lobbying group “firmly opposes” a plan for mileage tax on electric vehicles (EVs), an official of the group said on Thursday, adding that it would slow electrification efforts.

“We are firmly opposed to the hasty introduction of measures such as a mileage tax without public discussion,” said Seiichi Nagatsuka, vice chair of the Japan Automobile Manufacturers Association.

Japan’s Finance Minister Shunichi Suzuki floated the plan among the ideas he mentioned in a parliamentary debate last month to tackle a severe financial situation.

Suzuki said EVs, unlike gasoline vehicles, are not taxed at the driving stage through fuel taxation. He added that EVs are heavier than gasoline-powered vehicles, which have a large role in road damage.

Speaking at a news conference, Nagatsuka called for extending tax breaks on low-emission cars to spur electrification as consumers battle inflation and endure longer waiting times for delivery their vehicles.

(Reporting by Satoshi Sugiyama; Editing by Clarence Fernandez)