Under the current Act on the Restriction of Special Taxation, individual consumption tax is exempted or reduced up to 4 million won, aiming to promote eco-friendly vehicles. In fact, the special provision is scheduled to sunset at the end of this year. However, the need to extend the special provision is growing as the vehicle industry has been struggling due to the chip shortage and delay in vehicle production amid COVID-19. To stimulate the purchase of eco-friendly vehicles, a group of lawmakers proposed a bill for measures as follows:
- To extend the special provision for individual consumption tax cut until 2024.12.31
- To raise the maximum limit of individual consumption tax cut
- HEVs: 3 mil. won
- EVs: 6 mil. won
- FCEVs: 7 mil. won
