(LEAD) S. Korea to extend fuel tax cut, EV consumption tax reduction

(ATTN: ADDS more info in last 2 paras)By Kim Han-joo SEOUL, June 16 (Yonhap) -- South Korea will extend its fuel tax cuts and consumption tax reductions for electric vehicles (EVs) to ease the financial burden on consumers amid rising prices and weakening demand, the finance ministry said Monday. Under the latest extension, the current fuel tax reductions -- a 10 percent cut on gasoline and a 15 percent cut on diesel and liquefied petroleum gas (LPG) -- will remain in place for an additional two months through the end of August, according to the Ministry of Economy and Finance. This undated file photo shows a billboard in front of a gas station in Seoul showing the prices of gasoline and diesel. (Yonhap) South Korea first introduced the fuel tax cut in November 2021 as a response to rising energy prices. The government has since extended the measure multiple times, adjusting the rates in accordance with changes in the global energy market. This latest move marks the 16th extension of the fuel tax relief program. In addition, the government will extend the consumption tax reduction for EVs by six months, through the end of December 2025. Under the measure, the individual consumption tax will continue to be temporarily lowered from the standard 5 percent to a flexible rate of 3.5 percent, with a tax deduction cap of 1 million won (US$733). The temporary 15 percent reduction in individual consumption tax on fuels used for power generation, such as liquefied natural gas (LNG) and bituminous coal, will be extended for another six months until the end of December, the ministry said. South Korea, which relies heavily on energy imports, remains vulnerable to global price fluctuations, which often translate into domestic inflation. The government will also newly apply a zero-percent quota tariff on 10,000 tons of mackerel imports amid rising import prices, officials said. Additionally, the duty-free quota for processed egg imports will be expanded from 4,000 tons to 10,000 tons, as the initial quota has been nearly exhausted, the ministry added. khj@yna.co.kr(END)

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(ATTN: ADDS more info in last 2 paras)
By Kim Han-joo

SEOUL, June 16 (Yonhap) — South Korea will extend its fuel tax cuts and consumption tax reductions for electric vehicles (EVs) to ease the financial burden on consumers amid rising prices and weakening demand, the finance ministry said Monday.

Under the latest extension, the current fuel tax reductions — a 10 percent cut on gasoline and a 15 percent cut on diesel and liquefied petroleum gas (LPG) — will remain in place for an additional two months through the end of August, according to the Ministry of Economy and Finance.

This undated file photo shows a billboard in front of a gas station in Seoul showing the prices of gasoline and diesel. (Yonhap)

South Korea first introduced the fuel tax cut in November 2021 as a response to rising energy prices. The government has since extended the measure multiple times, adjusting the rates in accordance with changes in the global energy market.

This latest move marks the 16th extension of the fuel tax relief program.

In addition, the government will extend the consumption tax reduction for EVs by six months, through the end of December 2025.

Under the measure, the individual consumption tax will continue to be temporarily lowered from the standard 5 percent to a flexible rate of 3.5 percent, with a tax deduction cap of 1 million won (US$733).

The temporary 15 percent reduction in individual consumption tax on fuels used for power generation, such as liquefied natural gas (LNG) and bituminous coal, will be extended for another six months until the end of December, the ministry said.

South Korea, which relies heavily on energy imports, remains vulnerable to global price fluctuations, which often translate into domestic inflation.

The government will also newly apply a zero-percent quota tariff on 10,000 tons of mackerel imports amid rising import prices, officials said.

Additionally, the duty-free quota for processed egg imports will be expanded from 4,000 tons to 10,000 tons, as the initial quota has been nearly exhausted, the ministry added.

khj@yna.co.kr
(END)