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From next year, the reduction in gasoline and oil tax will be reduced to 25%… Diesel is 37%

2022-12-19T11:23:05.506Z


From next year, the reduction in fuel tax for purchasing gasoline will be reduced from the current 37% to 25%. For diesel, which is still at a high price level, the current 37% oil tax cut, the largest ever, will be maintained.


From next year, the reduction in fuel tax for purchasing gasoline will be reduced from the current 37% to 25%.



For diesel, which is still at a high price level, the current 37% oil tax cut, the largest ever, will be maintained.



The government has announced the 'flexible tax rate management plan for the first half of 2023' that contains this content.



First of all, the government decided to extend the oil tax cut scheduled until the end of the year for four months until the end of April next year, but the oil tax rate during this period will be different for each type of oil.



First of all, for gasoline, the extent of the oil tax cut will be reduced from the current 37% to 25% from next year.



As a result, the gasoline oil tax will rise slightly from the current 516 won per liter (L) to 615 won.



In the case of gasoline, it means that the price may be slightly higher than now as the oil tax rises.



However, this is 205 won per liter lower than the elastic tax rate (820 won per liter) before the oil tax cut.



The government explained, "Considering the fact that domestic gasoline prices are showing a stable trend compared to other types of oil, including diesel, we have partially reduced the amount of oil tax cuts."



For diesel, which is relatively expensive, the current 37% reduction in oil tax will be maintained until April next year.



LPG butane is also subject to a 37% reduction in oil tax as per the current system.



As a result, a price reduction factor of KRW 212 per liter for diesel and KRW 73 per liter for LPG butane occurred respectively.



The government also decided to come up with countermeasures to prevent hoarding due to the reduction of gasoline and oil taxes.



It is to prevent the expedient of securing oil at a cheap price before the oil tax goes up and releasing the quantity after the oil tax goes up to make a profit.



To this end, for the month of December, petroleum refineries are limited to 115% of gasoline exports compared to the same period last year.



It is also prohibited to evade gasoline sales without justifiable reasons or to export excessive quantities to specific companies.



As of 9 o'clock on the same day, the government implemented a 'Notice on Prohibition of Buying and Selling Petroleum Products' containing these contents.



Violation of the notification will result in imprisonment of up to 3 years or a fine of up to 100 million won.



Until March of next year, we also receive reports related to stalling through each city and province and the Consumer Agency.



Also, the 30% cut in passenger car sales tax, which is scheduled for the end of this year, will be extended for six months until the end of June next year.



The benefit of reducing the opening tax for passenger cars, which has been applied since July 2018, has continued for about five years.



Through this, the government is planning to promote passenger car consumption during the economic downturn.



When buying a passenger car, a 5% opening tax is originally charged, but if this is lowered by 30% and applied to 3.5%, the education tax (30% of the opening tax) as well as the value-added tax linked to the purchase price of the vehicle and the acquisition tax are reduced together, lowering the overall tax burden. There is.



The limit of the tax reduction benefit is 1 million won.



If the limit is met when purchasing a vehicle, consumers can receive tax cuts of up to 1.43 million won, including 1 million won in sales tax, 300,000 won in education tax, and 130,000 won in value-added tax.



The 15% reduction in consumption tax on power generation fuels such as LNG and bituminous coal will also be extended for six months at the current level.



The purpose is to reduce pressure on public utility rates to rise due to the burden of power generation costs.



The relevant enforcement decree will go into effect on January 1 of the next year after a legislative notice and a cabinet meeting.



(Photo = Yonhap News)

Source: sbskr

All news articles on 2022-12-19

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