Buyers of new hybrid electric cars will benefit from the promised tax breaks only if their cars satisfy fuel efficiency requirements set by the government, South Korean officials said yesterday.
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The ministry of knowledge economy unveiled a set of guidelines for hybrid cars that requires them to get 150% of the average fuel efficiency cars with traditional internal combustion engines, the Korea Herald reported.
According to the plans, small hybrid cars with an engine capacity of under 1,000 cc will be required to run a minimum of 25.5km per litre of petrol, while hybrid cars with 1,000-1,600 cc capacities are to operate 20.6km/litre.
Hybrid cars with engine displacement of 1,600-2,000 cc, and above 2,000 cc should get at least 16.8 km/litre and 14km/litre, respectively.
The government has outlined a set of guidelines after having a series of discussions with local carmakers and importers.
The government is planning to cut taxes and other fees associated with buying automobiles by up to 3.1m won for hybrid vehicles from 1 July until the end of 2012. The planned tax benefits will be provided by cutting the individual consumption tax by a maximum of 1m, the acquisition tax by as much as 400,000 won, and registration charges by 1m won.
The government is also planning to lower the amount of public bonds car buyers have to purchase for hybrid vehicles.
Three models meet the government’s fuel efficiency demands. They are Hyundai Kia Automotive Group’s liquefied petroleum gas-electric hybrid versions of the Avante, and Honda’s Civic hybrid.
