Different car tax system to take effect in Jan.

The Ministry of Government Administration & Home Affairs (MOGAHA) announced Sunday that automobile owners who pay the annual car tax in advance would be eligible for a 10% discount. The ministry also said the differential car tax system, which was scheduled to be implemented in July, would go into effect this month.

The differential car tax system reduces the tax amount based on the age of the car. Drivers of passenger cars older than 3 years (except for commercial vehicles) will receive 5% reductions and a 5% markdown will be granted for each year after that. For cars that are 12 years old or older, a 50% reduction will apply.

The car tax system, which was implemented in 1994, provides for 10% reductions if annual car taxes are paid in January. If the taxes are paid in June, reductions of 10% are applied only to 2nd half tax amounts.

For example, the driver of a 2000cc Sonata 2 that is 6 years old would receive a 10% reduction if he made the tax payment in January and a further 20% in line with the differential car tax system.

A MOGAHA official said in order to promote the advance payment scheme, the differential car tax system, which was to be introduced in July, would be put into effect ahead of schedule.

Yang Ki-Dae kee@donga.com