The government has decided to extend a temporary tax cut on the purchase of passenger cars in a bid to boost sluggish private spending.

The government reached the decision on Monday during a meeting on economic projects for next year chaired by President Moon Jae-in. 

With the move, a special consumption tax on passenger car purchases will be reduced from five percent to three-and-a-half percent until June of next year.

The tax cut would lower the cost of a 20 million won vehicle by around 430-thousand won, while a 25 million won car would cost some 540-thousand won less.

Also during Monday’s meeting, the government decided to allow more duty free shops to be established in downtown Seoul in a bid to vitalize tourism. 

The government also agreed to ease home-stay lodging regulations for urban areas, allowing Koreans to use such home-stay services for up to 180 days. 

Under the nation’s current tourism promotion law, homeowners in urban areas can provide home-stay lodgings only to foreigners.