With Japanese Prime Minister Yoshihide Suga strategically placing carbon neutrality at the centre of the country’s economic recovery plan, the country’s ruling party has called for extending tax breaks on low-emission vehicles as well as incentivize green investments, showed a proposal on Thursday.
Suga has vowed to cut greenhouse gas emissions to zero in 2050, and align the country with the European Union – ahead of China’s pledge to achieve the same goal by 2060.
According to an internal government document, Japan’s ruling Liberal Democratic Party (LDP) has proposed providing tax exemptions for companies that increase carbon-free investment. Proposals also include extending tax reductions of environment-friendly cars by two years as well as trim taxes on aviation fuel to help airlines hit by the coronavirus induced COVID-19 pandemic.
The proposals are scheduled to be finalized after they are approved by Komeito Party, the LDP’s coalition partner, later today; they will serve as a platform for the government’s tax policies for the fiscal year beginning from April.
The Japanese administration sees green innovation as a key area for Japanese business investment.