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Mitsubishi Motors yet to pay ¥5b tax

Mitsubishi Motors yet to pay ¥5b tax

TOKYO: Mitsubishi Motors Corp. had not returned as of the end of March some ¥5 billion of tax cuts for fuel-efficient vehicles excessively awarded because of overstated fuel economies, informed sources said.

The amount is part of the ¥9 billion that the automaker needs to return to the Japanese central and local governments because its vehicle users received excessive tax cuts due to the automaker’s fuel economy data manipulation.

Mitsubishi Motors is struggling to obtain letters of attorney from vehicle owners. “We want to return the unpaid money promptly,” an official said.

Japan provides bigger tax breaks to more eco-friendly vehicles. As fuel economy data were corrected, the amount that must be returned was fixed.

The data manipulation scandal came to light on April 20 last year. The automaker has finished more than 80 percent of its compensation to users affected by the wrongdoing, according to Mitsubishi Motors officials.