Fuel tax relief phase-out to start this week

All News 10:12 May 06, 2019

SEOUL, May 6 (Yonhap) -- The government said Monday it will start phasing out its current fuel tax cut this week after saying in April that it will extend a tax cut on fuel products until the end of August.

In November, the government lowered fuel taxes by 15 percent for six months in a move to ease the burden of small businesses and ordinary people. The temporary measure had been scheduled to end Monday.

The government said the tax cut now will be phased out from Tuesday to Aug. 31, though the fuel tax will be slashed only by 7 percent.

The latest move could reduce the tax burden on people by an additional 600 billion won (US$526 million), according to the finance ministry.

But the move came amid rising gas prices in the country.

Prices of gasoline at the pump in South Korea continued to rise for the 11th consecutive week last week.

Gasoline prices at stations across the country averaged 1,460.00 won per liter last week, according to the data provided by the Korea National Oil Corp. (KNOC).

This marked the 11th straight week that gasoline prices have logged on-week gains.