Tax breaks for hybrid cars are likely to be phased out over the next three years because they are no longer considered particularly eco-friendly.
Currently people who buy a hybrid get up to W1.83 million in discounts on taxes, but they are expected to be scrapped because the combustion-engine part of the motor is still considered a source of pollution (US$1=W1,206).
Finance Minister Hong Nam-ki in a meeting on Thursday said, cars that run on liquefied petroleum gas and compressed natural gas will also be excluded from the list of low-emission vehicles in 2024, "while hybrids will be excluded in 2025 or 2026." Instead, the government wants to revise the tax-break scheme in favor of electric and hydrogen cars.
People buying hybrid cars can get up to a W400,000 off on acquisition taxes and a maximum W1.43 million discount on other taxes. LPG vehicles are also subject to tax breaks ranging from W1 million for trucks and W3.5 million for school buses.
The Ministry of Economy and Finance said it will decide the exact timing after watching automotive industry trends and sales patterns of eco-friendly cars.
