Japan Eyes Tax Breaks for Decarbonization Investments

Politics Lifestyle

Tokyo, Nov. 12 (Jiji Press)--The Japanese government and the ruling camp are considering new tax breaks to promote investments aimed at reducing greenhouse gas emissions, informed sources said Thursday.

The tax breaks are expected to cover investments to build production facilities for lithium-ion batteries, indispensable to the spread of electric vehicles and renewable energy sources, according to a draft outline of fiscal 2021 tax system reform measures.

The ruling camp, led by the Liberal Democratic Party, aims to include the tax incentives for decarbonization investments in its tax system reform proposals to be compiled toward year-end.

Prime Minister Yoshihide Suga has set a target of reducing Japan's greenhouse gas emissions effectively to zero by 2050. He instructed Akira Amari, who chairs the LDP's Tax System Research Commission, to consider tax measures that would contribute to achieving that target.

According to the draft outline, tax incentives are likely to be granted to support capital spending programs certified by the government as effective in reducing greenhouse gas emissions, the sources said.

[Copyright The Jiji Press, Ltd.]

Jiji Press