The Japanese government may introduce subsidies and tax breaks for people buying cars equipped with diesel engines.

According to officials, the government wants to promote clean diesel cars and a panel will come up with specific steps by April or May so that some may be presented at this year's Group of Eight summit.

Under 0.1 per cent of cars on Japanese roads have diesel engines, according to the Ministry of Economy, Trade and Industry.

Around 50 per cent of cars sold in Europe are diesel and they can generally be 20 per cent to 30 per cent more fuel efficient than a standard gasoline car, according to Kyodo News.

Attending the meeting were METI Chief Akira Amari and Environment Minister Ichiro Kamoshita as well as Fujio Cho, Chairman of the Japan Automobile Manufacturers Association and Fumiaki Watari, President of the Petroleum Association of Japan.

Source:

Tax breaks for clean diesel cars may come in '09, 18/01/08
http://search.japantimes.co.jp/cgi-bin/nb20080118a3.html

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