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Japanese Car Owners Pay 23x More Tax Than Americans: 656,000 Yen Burden Exposed

  • Japanese car owners pay 656,000 yen ($4,500) in taxes over 13 years for registered vehicles, which is up to 23.4 times more than what US drivers pay.
  • This excessive tax burden in Japan leads to a declining car market, which contracted 7.5% in 2024, indicating potential long-term challenges for the world's third-largest auto market.
  • The Japan Automobile Manufacturers Association (JAMA) revealed data showing the heavy tax burden on Japanese car owners compared to drivers in other countries.
  • The analysis by JAMA in April 2024 highlights the significant amount of 656,000 yen that Japanese drivers of registered vehicles pay in automobile-related taxes over a typical 13-year ownership period.

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