S. Korea Prolongs Fuel Tax Cuts Until End of December
(MENAFN) South Korea will prolong its fuel tax cuts for an additional two months, though at reduced rates, the Ministry of Economy and Finance announced Wednesday, as the government attempts to balance consumer relief with fiscal pressures.
Originally scheduled to expire at the end of October, tax reductions on gasoline, diesel, and liquefied petroleum gas (LPG) will now continue through December.
Under the revised plan, the tax cut on gasoline will be trimmed from 10% to 7%. Diesel and LPG will see a decrease from the current 15% reduction to 10%.
According to the ministry, the adjustment reflects a careful consideration of recent fuel price trends and the impact on government revenue, while still aiming to soften the financial strain on consumers.
“The extended tax cut at a lower rate reflected the recent fuel prices and the burden on tax revenue, while continuing to ease the burden of fuel costs on people,” the finance ministry said in a statement.
The fuel tax relief measure was first implemented in November 2021 to mitigate surging energy costs for households and businesses.
Highly dependent on energy imports, South Korea remains exposed to fluctuations in global fuel markets, heightening the importance of tax policy in energy price management.
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