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Gov't Reviews Extending Tax Favors on Eco-Friendly Cars

Write: 2019-06-25 17:08:17Update: 2019-06-25 17:18:51

Gov't Reviews Extending Tax Favors on Eco-Friendly Cars

Photo : YONHAP News

The government is considering expanding tax reductions on the purchase of eco-friendly vehicles such as electric and hydrogen cars.

Meeting with automotive industry officials on Tuesday, Finance Minister Hong Nam-ki said that economic policy guidelines for this year's second half, which will be announced next week, will include measures to support investment and consumption in the auto sector.

Hong said the government is reviewing tax benefits for car-makers making additional investments.

Since 2017, a five percent reduction in the individual consumption tax has been provided for purchases of hydrogen and electric vehicles in an effort to promote environment-friendly cars. However, there is a five-point-two million limit to the exemption.

This tax break also expires at the end of this year and the government is considering its extension.

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