Japan scraps tax for green vehicles

Environmentally friendly vehicles will no longer be taxed in Japan.

The Japanese government has announced the measures to help promote low-carbon, sustainable mobility in the country.

That means that when Honda unveils its battery-powered bike in two years it should be exempt from acquisition tax and tonnage tax.

The measures have been welcomed by Japanese industry, as it hopes the move will help stop the decline in vehicle sales which has been blighting the country.