Special Excise Tax Likely To Be Cut from 19th

The special excise tax on car and air conditioner, etc. is likely to be reduced from 19th.

The Ministry of Finance and Economy (MFE) announced yesterday that it would cut down the special excise tax instantly if the committee for finance and economy of the National Assembly would pass the revised bill of tax law including the reduction of special excise tax on 19th. The MFE requested the New Millennium Democratic Party (NMDP) and the Grand National Party (GNP) to pass the revised bill on 19th.

Park Yong-Man, Director General for Property, Consumption and International Tax Affairs, said, ``After the NMDP and GNP declared to reduce the special excise tax, the sales contracts of special excise goods have been cancelled and the transactions were frozen, which fell the related companies into the difficult situation. Because there is a necessary reason to reduce the tax as soon as possible, the ministry requested the National Assembly for the passage of the revised bill.``

If the special excise tax is cut down from 19th, the tax office will refund the tax on goods held by the selling agencies. And in case of final sales, the tax will not be refunded to the consumers.

Eun-Taek Hong hcs@donga.com