The government and the ruling parties are considering freezing a new tax on vehicles to mitigate the economic impact of a planned consumption tax increase in October next year, sources close to the matter said Saturday.
By exempting the new tax to be imposed on purchases of vehicles depending on their fuel efficiency, the government aims to prevent a cutback on buying after the consumption tax hike.
Tax breaks for eco-friendly vehicles scheduled to end next spring are also likely to be extended for around two years, targeting a limited number of models, the sources said.