Fuel Tax Refunds Even for Non-Compact Cars... Will Cargo Trucks and Motorcycles Also Benefit?

[Asia Economy Sejong=Reporter Lee Junhyung] From this year, vehicle types other than compact cars can also receive fuel tax refund benefits. This is because the government expanded the scope of fuel tax refunds through amendments to the Restriction of Special Taxation Act.

According to the Ministry of Economy and Finance on the 10th, the amendment to the Restriction of Special Taxation Act, which took effect on the 1st of this month, includes grounds to expand the scope of fuel tax refunds. Originally, the fuel tax refund was limited to owners of compact passenger and van vehicles under 1000cc. However, the amendment expanded the refund recipients to include owners of vehicles designated by Presidential Decree, in addition to compact cars.

The government established the legal basis to increase the scope of fuel tax refunds to alleviate the fuel cost burden on vulnerable groups. In cases where fuel prices surge, fuel tax refund benefits can be extended to light cargo trucks under 1 ton or two-wheeled vehicles according to enforcement decree regulations. A government official explained, "We have newly established the delegation basis to support fuel cost burdens for low-income earners and self-employed individuals."

The government plans to announce specific fuel tax refund recipients through an amendment to the tax law enforcement decree in mid-month. However, since international oil prices have recently stabilized, there are no immediate plans to expand the refund scope to vehicle types other than compact cars. The Korea Energy Economics Institute, a government-funded research institute, forecasted that the average international crude oil price (Dubai crude) this year will be $85.46 per barrel. This is more than $10 lower than last year's $96.32 per barrel.

Meanwhile, the annual fuel tax refund limit is 300,000 KRW. For gasoline and diesel, 250 KRW per liter is refunded, and for LPG butane, the entire tax amount is refunded within the set limit. Eligible recipients can use fuel purchase cards issued by designated card companies.

The actual refund is processed by the card company deducting the refund amount from the fuel payment and then billing the balance. This means that eligible recipients can receive fuel cost support without any separate application procedures.

Reduction in Fuel Tax Cut Leads to Gasoline Price Increase
(Seoul=Yonhap News) Reporter Jin Yeon-su = Due to the reduction in the fuel tax cut this week, the selling price of gasoline at domestic gas stations has risen. According to the Korea National Oil Corporation's oil price information system OPINET, the average selling price of gasoline nationwide for the first week of January (1st to 5th) was 1,553.55 KRW per liter, an increase of 26.63 KRW from the previous week. Gasoline prices, which had fallen for 16 consecutive weeks on a weekly basis until last week, turned to an upward trend after 17 weeks. The photo shows oil price information posted at a gas station in Seoul on the 8th. 2023.1.8
jin90@yna.co.kr
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