The government has decided to extend the 20% fuel tax cut, which is due to end at the end of April, by three months.
If the international oil price rises sharply from the current level, it is also decided to consider expanding the range of fuel tax cuts.
Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki held a price-related ministerial meeting at the government complex in Seoul on the 4th and said this.
Deputy Prime Minister Hong said, “In order to minimize the price impact from high oil prices, the oil tax cut (20%) and liquefied natural gas (LNG) quota tariffs of 0%, scheduled to end at the end of April, will be extended for three months until the end of July.”
“In addition, if the international oil price rises steeper than the current level and economic uncertainty escalates further, we will consider expanding the scope of the fuel tax cut,” he said.
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▲ Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki presides over the meeting. (Photo = Ministry of Strategy and Finance) © |
The application of quota tariffs and increase in quantity will be pursued, focusing on items with concerns about price and supply/demand instability due to the recent crisis in Ukraine.
The quota of tariffs for raw materials that can be replaced with feed, such as barley and wheat hide, will be expanded to 100,000 tons and 60,000 tons, respectively.
The World Trade Organization (WTO) Low Rate Tariff (TRQ) quantity for potato meal will be increased to 1,675 tons by 1500 tons, and the application of quota tariffs for potato chips for chips and an increase in the TRQ volume of prepared peanuts are also planned.
For key items with high external dependence used in the semiconductor manufacturing process, such as neon and krypton, the company plans to check the supply and demand situation and decide whether to apply the tariff quota within this month.
If the price uncertainty in the non-ferrous metal market persists, the deadline for temporary additional support measures, such as extending the credit release limit and extending the release period by three months, will also be extended until the first half of this year.
In order to alleviate the cost burden of the processed food and restaurant industry, the interest rate on feed and food raw material purchase funds will be lowered by 0.5 percentage points, respectively, and for individual business owners suffering from COVID-19, it will be excluded from the April VAT notice, and the burden of replacing food packaging materials will be eased. promote
To continue the recent stabilization of agricultural and fishery products prices, a total of KRW 7 billion in discount coupons for agricultural and fishery products will be provided this month, and supply and demand management will be focused on vegetables by utilizing the Chinese cabbage stockpiling and vegetable price stabilizers.
In relation to price hikes such as processed food, the revised Fair Trade Act, which states that only an agreement to exchange information between competitors, such as prices, may constitute collusion, will be strictly applied if violations of the law are detected.
Deputy Prime Minister Hong said in relation to the February consumer price inflation of 3.7% announced on the same day and the international oil price exceeding $100 per barrel for the first time since July 2014 due to Russia’s invasion of Ukraine and other factors. “It is a very critical time, raising concerns that it could enter a vicious cycle,” he said.
He continued, “The high inflation rate can reduce real income and undermine people’s livelihoods and economic recovery, so it is very essential to block the spread of expected inflation. We will mobilize all policy tools,” he said.
“In the case of price, there is a limit to achieving price stability only with government measures and efforts in a market economy where price determination is autonomous. Please participate and cooperate.”
