Seoul: South Korea plans to expand fuel tax cuts in July as part of efforts to ease inflationary pressure from surging energy costs, Finance Minister Choo Kyung-ho said on Sunday June 19.
The Government will expand tax cuts on fuel consumption to a legal cap of 37 percent from the current 30 per cent, according to Choo.
The measure will be effective until the end of this year, Yonhap News Agency reported.
South Korea is facing mounting inflationary pressure, as the protracted Russia-Ukraine war has jacked up crude oil and commodity prices.
Demand-pull price pressure also rose due to the recovery in demand.
South Korea’s consumer prices jumped 5.4 per cent on-year in May, the fastest rise in almost 14 years and a pickup from a 4.8 per cent spike in April.