Tax deduction due for energy-saving facility

Investment in energy conservation facilities will be given a 10-percent discount on taxes.

In order to encourage consumers to save energy, the government decided to increase the discount on taxes on investment in facilities for energy conservation at industrial firms to 10 percent from the current 5 percent. The government will also strengthen the system to have the car owner not use the vehicle every 10 days.

At the same time, industry minister Shin Kook-Hwan will visit Middle East shortly to secure the stable supply of crude oil.

These and other programs were worked in an emergency meeting of economic ministers, including Finance and Economy Minister Jin Nyum, to discuss how to cope with the skyrocketing international oil prices on Friday.

The tax reduction plan designed to encourage investment in facilities for energy conservation will go into effect from January after it is approved by the National Assembly.

The government also decided to drastically expand the compensation system for the products of high energy efficiency promoted by energy suppliers such as the Korean Electric Power Corporation.

Lee Myung-Jai mjlee@donga.com