South Korea to extend fuel tax cut through November amid price burdens

SEOUL: South Korea will extend its fuel tax cut scheme by another two months through November to ease price burdens on the public amid protracted tensions in West Asia, the Finance Ministry said Friday.

Yonhap reported the finance and economy minister said the decision was made during an economy-related ministers' meeting chaired by finance minister Koo Yun-cheol, citing the need to ease the public's burden from fuel costs.

Under the measure, the current tax reductions of 15 per cent for gasoline and 25 per cent for diesel and butane, originally set to expire at the end of this month, will remain in place through the end of November.

"We have decided to maintain the current tax cut scheme, considering the country's capacity to address a possible increase in oil price volatility," the finance ministry said in a release.

The country has decided to maintain larger tax cuts for diesel, which is essential for industrial and logistics activities, and butane, which is widely used as fuel for small trucks, it added.