Gov't to slash auto related taxes to fuel domestic sales

SEOUL, March 26 (Yonhap) -- The government said Thursday that it will slash
automobile-related taxes to spur domestic consumption and help carmakers better
cope with the worldwide economic slump.
The temporary measures that go into effect on May 1 and will last through the end
of the year call for consumption, registration and acquisition taxes for newly
purchased vehicles to be cut by 70 percent, the Ministry of Knowledge Economy
said. The maximum amount in individual tax reductions to be given has been set at
2.5 million won (US$1,860).
The incentives, ironed out at an emergency economic policy meeting earlier in the
day, will only apply to owners who registered their vehicles before Jan. 1, 2000
and are looking to buy new cars.
The measure could boost auto sales by a total 5.5 million units.
The ministry in charge of the country's industrial policy added that R&D funds
would be made available to carmakers to help improve the fuel efficiency of new
cars.
The country's auto industry employs 1.6 million workers, or 6.7 percent, of the
total workforce. In 2008, the country's exports totaled $US48.9 billion with an
overall trade surplus of $41.3 billion.
yonngong@yna.co.kr
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