South Korea to offer tax incentives for electric cars

October 12th, 2011 - 2:14 pm ICT by IANS  

Seoul, Oct 12 (IANS) South Korea plans to offer tax incentives for electric car buyers from next year in a bid to help promote sales of energy-saving vehicles, a government report said Wednesday.

Under the new tax scheme scheduled to take effect from January 2012, a purchaser of a new electric car would receive up to 4.2 million won ($3,586) in tax breaks, the ministry of knowledge economy said in a statement.

The items for tax exemption include 2 million won in consumption tax, 0.6 million won in education tax, 1.4 million won in acquisition tax and 0.2 million won in other taxes, reported Xinhua.

In addition to the tax incentives, the ministry completely revised the standard forms for environmentally friendly automobiles under which carmakers would be required to describe the cars’ maximum speed and the maximum distance of travel after each electric charge.

The ministry said the government would continue to expand its tax incentives for electric car buyers to help promote the sales of energy-saving vehicles.

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