The government will extend the fuel tax cut, originally set to end this month, for an additional two months until the end of November. The current reduction rates of 15% for gasoline and 25% for diesel and butane will remain in place to alleviate the burden of fuel costs on citizens amid ongoing instability in the Middle East.
On September 19, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol will preside over an emergency economic headquarters meeting at the Government Sejong Center to discuss the "fuel tax operation plan after October."
Under this plan, the fuel tax cut will be extended from September 30 to November 30. The tax rates, including value-added tax, will remain at 698 won per liter for gasoline, 436 won for diesel, and 152 won for butane. Compared to before the cut, these rates are lower by 122 won, 145 won, and 51 won, respectively.
The government decided to extend the current tax reduction measures to ease the financial burden on citizens due to the ongoing instability in the Middle East and to prepare for potential future fluctuations in oil prices.
Notably, the tax reduction rates for diesel, essential for industry and logistics, and butane, commonly used by low-income households, will remain higher than that for gasoline. This aims to reduce fuel costs for the logistics sector and ordinary citizens.
This extension maintains the existing tax relief benefits for an additional two months but does not expand the reduction rates, meaning no further tax relief will be implemented.
The government plans to implement the extension starting October 1, following the submission of amendments to the Enforcement Decree of the Transportation, Energy, and Environment Tax Act and the Individual Consumption Tax Act to the Cabinet meeting.
* This article has been translated by AI.
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