The government has decided to extend fuel tax cuts, which were set to expire at the end of the year, to next April, but the maximum tax cut for gasoline has been lowered. 

The government revealed the decision in a plan released on Monday on such taxes and individual consumption tax on passenger vehicles for the first half of 2023. 

Under the plan, the government will maintain a 37 percent tax reduction cap on diesel and liquified petroleum gas(LPG), which was introduced in July. But the maximum legal cap of fuel tax cuts for gasoline will be lowered from 37 percent to 25 percent. 

The government said it made the decision after taking into consideration that domestic gasoline prices have shown signs of stability compared to diesel prices.  

Also under the plan, the government will extend a 30-percent cut in individual consumption tax on passenger vehicles by another six months to next June as part of efforts to boost consumption.

With the 30 percent cut, consumption tax levied when purchasing a new passenger car will be slashed from five percent to three-and-a-half percent.