Fuel Tax Cuts Extended Through Jan. 31
Tax cuts of 122 won, or approximately $0.09, per liter for gasoline and 145 won per liter for diesel will remain in effect through the end of January next year. The 51-won-per-liter tax cut for liquefied petroleum gas (LPG) butane will also continue.The government confirmed on Nov. 11 that it would
The government has extended fuel tax cuts in South Korea through the end of January 2024. Gasoline tax cuts will decrease from 122 won to 698 won per liter, diesel tax cuts will fall from 145 won to 436 won per liter, and LPG butane tax cuts will reduce from 51 won to 152 won per liter. The extension was approved by the Emergency Economic Ministers Meeting, chaired by Deputy Prime Minister and Minister of Finance and Economy Lee Hyeong-il.
The decision aims to alleviate fuel costs for consumers and curb inflation amid geopolitical uncertainty from the Middle East war. The 25% tax cuts for diesel and butane, crucial for industrial and logistics operations, and small businesses, will remain unchanged. The government prioritized supporting vulnerable groups and small businesses by maintaining higher reduction rates for these fuels.
The extension is expected to provide policy flexibility in case of increased oil price volatility, despite recent declines in international oil prices. The government plans to submit amendments to relevant tax acts for Cabinet approval soon. Additionally, an Economic Polarization Response Task Force will be established to address concerns about equitable distribution of economic growth benefits.
Written by urgent.news from BusinessKorea's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
