Choo Kyung-ho: "If Necessary, Apply 50% Flexible Tax Rate on Fuel Tax"

[Image source=Yonhap News]

[Asia Economy Sejong=Reporter Kwon Haeyoung] On the 1st, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho stated, "If necessary, we will apply a 50% flexible fuel tax rate at an appropriate time."

At the Ministry of Economy and Finance's work report session held at the National Assembly's Planning and Finance Committee on the same day, Deputy Prime Minister Choo said, "If the National Assembly completes the related legislation, we will make a comprehensive judgment based on the actual price situation and fiscal and economic conditions."

Earlier, the National Assembly's Special Committee on People's Livelihood Economy passed a partial amendment to the Transportation, Energy, and Environment Tax Act to expand the scope of flexible fuel tax rate adjustment from the current 30% to 50% until the end of 2024. If the amendment is approved at the plenary session on the 2nd, the possible range of actual fuel tax reduction considering the flexible tax rate will expand from the current maximum of 37% to a maximum of 55%. While the scope of fuel tax adjustment is determined by tax law, the flexible fuel tax rate is a matter of enforcement decree and can be adjusted at the government's discretion.

Deputy Prime Minister Choo said, "Recently, oil prices have shown a slight downward trend," adding, "It would be best if a situation arises where the 50% flexible tax rate does not need to be applied."

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