Japan to weigh ending flat tax on EVs, shifting to new scale

TOKYO — Japanese policymakers will consider changes to a flat local tax on electric vehicles to head off a potential drop in revenue as drivers shift away from more heavily taxed gasoline cars.

Local automobile taxes have a class component based on engine size that ranges up to 110,000 yen ($789) a year, but that is set at 25,000 yen for EVs and fuel cell vehicles. That makes EVs the least-taxed autos, apart from minicars.