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3.82. (...) Tax reforms introduced in the 2019 Budget are to: (...) revise the eco-car tax deduction under the motor vehicle tonnage tax; (...) and reduce the tax rate on acquisitions of automobiles (a newly-introduced environmental performance excise) by 1%, as a one-year temporary measure from October 2019.

3.86. (...) Tax incentives are also in place to promote the installation of energy-saving facilities.

3.88. In its latest notification to the Committee on Subsidies and Countervailing Measures under Article XVI:1 of GATT 1994 and Article 25 of the Agreement on Subsidies, Japan listed 51 subsidy schemes provided by central or local governments, largely for fiscal years 2016 and 2017; support was mainly targeted at the following activities/sectors: crafts; mining and energy; beverages (sake and shochu); agriculture; fisheries; (...)

Table 3.12 Subsidy and other assistance schemes terminated, 2017-19
Scheme; Date of Termination
(...)
Subsidy for supporting action to improve energy efficiency by private enterprises; 3/2017;
Geothermal energy programme; 3/2017;
(...)
Subsidy for inland water aquaculture; End-FY2018

3.89. Subsidies are available for the purchase of clean energy vehicles sold by car makers, and for building hydrogen fueling stations. The subsidy to promote clean energy vehicle purchases applies to the purchase of electric battery vehicles, plug-in hybrid electric vehicles, fuel-cell energy vehicles, and clean diesel vehicles (Table 3.13). The subsidy amount is calculated based on the grade of the clean energy vehicle, and is paid within the limits set per vehicle grade (it is not paid if the calculated amount is under JPY 15,000). The budgetary allocation for this subsidy scheme was JPY 16 million in 2019. The upper limit of the subsidy scheme for building hydrogen stations is from JPY 180 million to JPY 390 million. The upper limit on the subsidy for the operation of hydrogen stations is from JPY16 million to JPY 26 million. These limits depend on the type of machines involved.

Table 3.13 Subsidy to promote clean energy vehicle purchases
Vehicle Type: (...) Fuel-cell energy vehicles, Clean diesel vehicles;
Subsidy Amount: (...) Subsidy amount is calculated based on the price difference between the clean energy vehicle and the gasoline-powered vehicle of the same model/grade. Maximum subsidy amount for fuel-cell vehicles is JPY 2,250,000. Maximum subsidy amount for car-derived vans is JPY 150,000

3.91. Since 2016, new subsidy programmes were introduced in the following areas: (...) sustainability support for SMEs (FY2019 budget, allocation of JPY 110.0 billion); (...)

3.93. The Development Bank of Japan Inc. (DBJ), which is wholly owned by the Government, offers various financial services, including long-term loans and investment in both local and foreign projects involving natural resources and energy; technology development; marine transport; urban renewal; and antipollution technology (...)

3.94. As set out in government budgets over the period FY2017-19, various new support programmes were introduced, namely: (...) support for introducing leading-edge energy-saving equipment; grants to advance regional reinvigoration; and development and demonstration of smart agriculture technology.

3.99. There were no changes to the agencies in charge of TBT issues over the review period. These remain the METI; the Ministry of Internal Affairs and Communications (for communications equipment); the MAFF (for foodstuffs, agricultural, forestry and fisheries products); the Ministry of Health, Labour and Welfare (for drugs and medical devices); the Consumer Affairs Agency (for labelling) and the Ministry of Environment (for environment).