Transition committee, government “to cut fuel tax by 20% → increase by 30%”

When expanded, the gasoline tax is 574 won per liter.
Government announces fuel tax cuts on the 5th
As oil prices skyrocketed, fearing a blow to the economy of the common people, the Presidential Transition Committee officially requested the government to expand the range of fuel tax cuts from the current 20% to 30%. The government, which is considering a wider range of fuel tax cuts, plans to announce the range of fuel tax cuts on the 5th of this month.

On the 31st, Choi Sang-mok, secretary of the 1st Economic Division of the transition committee, made this statement while briefing the contents of the business report of the economic division chaired by President-elect Yoon Seok-yeol at the transition committee office in Toongui-dong, Jongno-gu, Seoul. Choi said, “As the current government has said that it will consider additional cuts, it is expected that necessary measures such as revision of the enforcement ordinance will be taken in April.”

The government is expected to announce the extent of the fuel tax cut at the price-related ministerial meeting on the 5th of this month. Under the current law, the government can cut the fuel tax up to 37% (based on the flexible tax rate). If the fuel tax cut is expanded to 30% as requested by the transition committee, the tax will be reduced to 574 won per liter for gasoline and 407 won for diesel. Before the fuel tax cut, the fuel tax per liter of gasoline and diesel was 820 won and 582 won, respectively.

Regarding the cut-off period, Secretary Choi replied “undecided”. Choi said, “It is a request from the current government, but it is difficult to say right now because we do not know how much the government will do.

Major countries around the world are also responding to the high international oil price. According to Bloomberg News on the 30th (local time), citing a U.S. government official, the Joe Biden administration will announce a plan to release 1 million barrels a day of strategic oil for a total of 180 days. Member States of the International Energy Agency (IEA) will also announce the release of strategic oil reserves on the 1st.

Sejong = Reporter Kim Hyung-min kalssam35@donga.com
By Kang Seong-hwi, staff reporter yolo@donga.com