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According to Nikkei Asia, the Japanese government plans to launch a ten-year tax incentive to promote mass production in five areas including electric vehicle (EV) production and semiconductor equipment manufacturing.
This measure will be included in the tax reform framework for fiscal year 2024, promoted by Japan’s ruling Liberal Democratic Party, and is expected to be finalized this week.
Benefiting industries include sustainable aviation fuel, green steel, green chemicals and battery storage, with electric vehicles receiving a tax break of 400,000 yen each.
The semiconductor industry can receive a corporate income tax reduction of up to 20%, while the upper limit for other industries is 40%.
This plan aims to promote Japan’s industrial development in these key areas.
(Source: Reuters Image source: freepik)
