Japan is implementing significant changes to its tax system that will affect both consumers and businesses, with foreign residents set to benefit from lower gasoline prices while corporate tax reforms remain under debate. According to NHK, the Japanese Diet is moving forward with legislation to abolish the gasoline tax provisional rate, with the bill passing the House of Councillors Finance Committee on November 27 with unanimous support. The legislation is expected to be officially enacted on November 28, with the provisional rate set to be eliminated on December 31. This marks a significant shift in Japan's fuel taxation policy that has been in place for decades. For expats who drive in Japan, the immediate impact will be felt at the pump. NHK reports that as of November 25, regular gasoline prices nationwide averaged 168.8 yen per liter, marking the third consecutive week of price decreases. The government has already expanded its fuel subsidy program by an additional 5 yen per liter starting November 27, in preparation for the abolition of the provisional tax rate. Prices are expected to continue declining as the December 31 deadline approaches. The provisional gasoline tax rate, which has added approximately 25 yen per liter to fuel costs, was originally introduced as a temporary measure but has remained in effect for years. Its elimination represents substantial savings for drivers, particularly those who commute by car or live in rural areas where public transportation is limited. For foreign residents who rely on personal vehicles, this change could reduce monthly transportation costs significantly. Meanwhile, the Liberal Democratic Party's Tax Commission is actively debating broader automotive tax reforms. According to NHK, a Tax Commission subcommittee meeting saw numerous opinions calling for the abolition of the "environmental performance tax" (kankyō seinou wari), a levy imposed on vehicle purchases based on fuel efficiency. This tax has been a point of contention, particularly as Japan pushes toward electric vehicle adoption while maintaining traditional automotive taxes. These automotive tax discussions are part of broader tax reform preparations for the next fiscal year. For expats considering purchasing a vehicle in Japan, these debates could influence the total cost of ownership, though specific changes to the environmental performance tax have not yet been finalized. On the corporate taxation front, the LDP Tax Commission held a meeting of its executive leadership on November 27 to discuss special taxation measures for corporations. According to NHK, the discussions revealed divided opinions on how to handle corporate tax incentives. Some participants argued for thorough verification of the effectiveness of existing tax breaks before continuing them, while others emphasized the need to maintain incentives that promote corporate capital investment. For expats working in Japan, particularly those in management positions or running their own businesses, these corporate tax debates could affect company finances and investment decisions. Special taxation measures often include incentives for research and development, equipment purchases, and wage increases—all factors that can influence business operations and employment conditions. The corporate tax discussion reflects Japan's ongoing challenge of balancing fiscal responsibility with economic growth promotion. As the country grapples with an aging population and mounting public debt, policymakers are scrutinizing tax expenditures while trying to maintain an attractive business environment. These tax system changes come at a time when Japan is working to stimulate economic activity while managing inflationary pressures. For foreign residents, the gasoline tax reduction provides tangible relief from cost-of-living increases, while corporate tax reforms may have longer-term implications for employment and business conditions. Expats should monitor these developments as the tax reform discussions continue through the end of the year. The gasoline tax reduction is confirmed and will take effect December 31, but automotive purchase taxes and corporate tax measures remain subject to ongoing political negotiations.