The Korean government may cut automobile taxes by up to 3.3 million won ($2,440) for hybrid electric vehicles from July 1, according to the Korea Herald.
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The newspaper said that according to sources at the Ministry of Strategy and Finance and industry officials, the government is planning to cut taxes and other fees associated with buying automobiles by between 3.1 million won and 3.3 million won for hybrid vehicles until the end of 2012.
The planned tax benefits will be provided by cutting the individual consumption tax by a maximum of 1 million won, the acquisition tax by as much as 400,000 won, registration tax by 1 million won, education and other taxes by up to 391,000 won and value added tax by 130,000 won, the paper said.
The government is also planning to lower the amount of public bonds car-buyers have to purchase by between 200,000 won and 400,000 won for hybrid vehicles.
The planned tax cut for hybrid cars is the third such measure aimed at stimulating the car market, the report noted.
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By GlobalDataIt added that Hyundai Kia Automotive Group will be launching hybrid cars in time for the planned measures.
