It has been decided to introduce a new tax system in South Korea for the purchase of cars, reports KBS World on June 7.
The national tax office said that taxes on the purchase of passenger cars in South Korea will be calculated differently to narrow the gap between taxes on domestic and imported cars.
The new system aims to introduce an individual consumption tax of five percent of the car’s value, after deducting 18% from the car’s factory price.
In the case of a consumer purchasing a $32,000 South Korean car, the tax will now be applied to the final price of $26,000, with an 18% deduction, saving the buyer $400.
Currently, excise taxes on South Korean vehicles are calculated based on ex-factory prices.
Source: Rossa Primavera
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