Price Of Flat TV Set To Be Lowered 20 Percent

Special consumption tax on the flat TV set, called `plasma display panel` (PDP) TV, is to be lowered from 15 percent to 1.5 percent beginning August 1 until July 2005, and the price is anticipated to go down by 20 percent.

The government reviewed and passed the revised bill on the enforcement ordinance of the special consumption tax at the Cabinet Council presided over by President Kim Dae-Jung at the central government building yesterday.

According to the revised bill, in order to expand the foundation for the domestic consumption of PDP TV and to develop PDP TV as the major commodity for exports, the government decided the following; the government will lower the special consumption tax to 1.5 percent for 4 years until July 2005; the government will increase the special consumption tax 6 percent in the fifth year when a sufficient market is anticipated to be formed; it will increase the tax 10.5 percent in the sixth year, and 15 percent in the beginning of August 2007.

A government official said, ``Although PDP TV is a technology that has international competitiveness, it is difficult to form a market due to the high price. If the special consumption tax is lowered, the education tax and a value added tax would be lowered. Therefore, the consumer price of PDP TV (42 inches) will be lowered from 10 million won to 8.7 million won.``

The Cabinet Council also passed the revised bill on the enforcement ordinance of the Customs Law, which levied the tax when PDP TV was imported from foreign countries, to lower the tax 45 percent to 25 percent.

The Cabinet Council passed the revised bill on the enforcement ordinance of the grain management law. According to the revised bill, the government can pay 50 percent of the contracted fee for buying grains in advance. The government has paid 40 percent of the contracted fee for buying grains in advance when the government made a contract with farmers for buying grains to support the farm-aid. In addition to this, the government passed the revised bill on the regulation of the KAIST to allow foreigners to enter not only masters and PhD programs but also the bachelor`s degree program.

Boo Hyung-Kwon bookum90@donga.com