Posted March. 31, 2009 10:48,
Consumers who get rid of their old cars to buy new ones can choose between an unlimited consumption tax of 30 percent or a 70-percent cut up to 1.5 million won (1,078 U.S. dollars).
The Strategy and Finance Ministry yesterday said it will allow new car buyers to choose between the two tax discounts to spur consumption amid the economic slump. The move comes as people who buy expensive cars favor the 30-percent tax cut without limit to the 70-percent cut of up to 1.5 million won.
The 30-percent cut was adopted in December last year and will expire at the end of June, while the 70-percent reduction is valid from May until the end of this year. Therefore consumers will get to choose between the two incentives in May and June, when both are available.
The government also plans to knock 70 percent off from acquisition and registration taxes for those trading old cars for new ones.