Korea Looking to Cut Oil Tax

April 7, 2011 Taxation in South Korea

Pump JackIn an effort to ease escalating upward inflationary pressure in Korea, the government could instate tax cuts on crude oil imported into the country.

Speaking during a government session at the National Assembly on April 6th, South Korean Prime Minister Kim Hwang-sik explained that the government will run an extensive study on the impact that tax cuts on oil will have on overall tax revenues collection, and the effect that the changes will have on the national energy sector. The government will consider the results and pursue actions based on the findings.

The Prime Minister’s comments came in response to question from the ruling Grand National Party, when it suggested that a tax cut on oil would be a good option for reducing inflation levels, which he claimed would have deeply negative effects for the country’s working class.

Photo by Vlastula