- Korea will extend its consumption tax cut on passenger cars to 3.5% until June 30, 2026.
- The fuel tax cuts (7% on gasoline, 10% on diesel and LPG) will be extended until February 28.
- These measures aim to boost domestic consumption and ease consumer burdens amid volatile global oil prices.
- The consumption tax cut was first introduced in 2018, and the fuel tax cut in 2021, with multiple extensions since.
- Korea is vulnerable to external energy price shocks due to its reliance on energy imports.
Source: koreatimes.co.kr
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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