The government has announced a two-month extension of the fuel tax reduction, initially set to expire at the end of this year. This measure, along with efforts to reduce electricity bills and heating costs, was announced by Deputy Prime Minister and Minister of Economy and Finance, Choi Sang-mok. He mentioned on KBS 1 Radio’s “Success Economy with Lee Dae-ho” on the 28th that there is no need to worry about the fuel tax increasing until the end of February next year.
Fuel tax, which includes taxes on gasoline and diesel such as the transportation, energy, and environment tax, driving tax, education tax, and value-added tax, will remain lowered. Since November 2021, the temporary reduction has been extended multiple times, with the latest being in October. The reduction rates have been adjusted, with the gasoline tax being reduced from the initial 20% to 15%, and the diesel and liquefied petroleum gas (LPG) butane tax from 30% to 23%.
Additionally, the government will extend the individual consumption tax cut on power generation fuels for six months, which was initially set to end on December 31st. This is aimed at alleviating the cost burden for energy public corporations like Korea Electric Power Corporation and is expected to aid in reducing electricity bills.
Furthermore, the 0% tariff on LNG (liquefied natural gas) imports used for city gas during winter, also set to end on December 31st, will be extended by three months. This extension aims to help ease the burden of electricity, heating, and fuel costs for citizens during the winter months.