[Changes in the Second Half of 2022] 37% Reduction in Fuel Tax... Extension of Vehicle Acquisition Tax Exemption

Additional Reduction Effect of 57 KRW per Liter for Gasoline and 38 KRW per Liter for Diesel

[Asia Economy Sejong=Reporter Kwon Haeyoung] From July, the fuel tax reduction rate for gasoline, diesel, and liquefied petroleum gas (LPG) butane will be expanded from the existing 30% to 37%.

The government published "Changes Starting from the Second Half of 2022," which summarizes the system and regulatory changes from the second half of this year, on the 30th.

First, to alleviate the fuel cost burden on low-income earners and self-employed individuals amid the ongoing high oil price situation and to contribute to price stability, the fuel tax reduction rate will be expanded to the maximum possible rate of 37% by presidential decree from next month until the end of this year. Accordingly, compared to the existing 30% fuel tax reduction, an additional reduction effect of 57 KRW per liter for gasoline, 38 KRW per liter for diesel, and 12 KRW per liter for LPG butane is expected.

The individual consumption tax reduction for passenger cars, which was scheduled to end at the end of this month, will also be extended for six months and implemented until the end of the year. Accordingly, the statutory individual consumption tax rate for passenger cars manufactured or imported and declared by the end of the year will continue to be reduced from the existing 5% to 3.5%.

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