Proposal by Gwangju City Council for 'Compact Car Benefit Support Ordinance' Adopted by National Council of Chairpersons

Kim Yongjip, Chairman of the Gwangju Metropolitan Council.

[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] The Gwangju Metropolitan Council's proposal to the National Association of Chairpersons of City and Provincial Councils, titled "Resolution Urging the Amendment of the Local Tax Special Cases Act and the Restriction of Tax Special Cases Act to Support Benefits for Compact Cars," has been adopted.

The proposal includes ▲ exemption from acquisition tax for all compact car buyers, raising the annual fuel tax limit from 200,000 KRW to 300,000 KRW ▲ providing a subsidy of 500,000 KRW for small business owners purchasing compact cars ▲ establishing a refund system for the individual fuel consumption tax (hereinafter referred to as fuel tax) up to 500,000 KRW annually.

The current Local Tax Special Cases Act provides an acquisition tax reduction of up to 500,000 KRW when acquiring a compact car for non-commercial use, but this benefit will expire at the end of this year.

The Gwangju Metropolitan Council proposed extending the tax reduction sunset period until 2024 and removing the deduction limit to increase tax relief for compact car buyers.

Also, the Restriction of Tax Special Cases Act allows compact car owners to receive a fuel tax refund up to 200,000 KRW when purchasing fuel, but this benefit will also expire at the end of this year.

Accordingly, the Gwangju Metropolitan Council requested extending the fuel tax refund period until 2024 and raising the annual fuel tax refund limit from 200,000 KRW to 300,000 KRW.

Furthermore, it proposed establishing a system that provides a one-time purchase subsidy of 500,000 KRW to small business owners purchasing compact cars and refunds fuel tax up to 500,000 KRW annually.

Chairperson Kim Yongjip said, “We considered providing economic benefits to small business owners facing financial difficulties due to COVID-19 and supporting the sales of Casper produced by Gwangju Global Motors (GGM). We will actively work to ensure this resolution leads to legislative amendments.”

This content was produced with the assistance of AI translation services.