Eco-car Tax Break to be Extended

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In April, 2012 the popular eco-car tax reduction plan is scheduled to expire, however the government is working to extend the program, according to recent articles by the Nikkei Newspaper. Although on the other hand, plans that were in in the works to eliminate sales tax an new automobile purchases have been but off for the time being, as a compromise for the current direction the government is taking to prevent the sales tax rate from increasing. Since the earthquake there have been calls to raise the current sales tax, 5% nationwide, to somewhere between 7% and 10% to aide the recovery effort. Strong criticism has kept the increase from occurring so far. Japanese consumers use credit cards far less than Americans do, so changing the rate from the calculation-friendly 5% could cause more problems that initially though (most calculators and cash registers would have to be reprogrammed, for one).

Currently indications point to drastic reform for automobile taxes will likely be pushed until 2013, according to several reports

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