Bid to raise taxes on expensive cars - Korea JoongAng Daily
Therefore, 400,000 won ($335. 20) is levied the same on a Hyundai Sonata with 1,999 cubic centimeters (cc) and a BMW 520d with 1,995 cc, regardless of the wide gap in the value of the vehicles. Ruling Saenuri Party lawmaker Shim Jae-chul is planning to submit a bill next week to the National Assembly that revises current auto tax codes to determine the tax rate depending on each car’s price. “It’s more reasonable to determine the tax rate with the car’s price, reducing tax for low- to mid-priced models while expanding tax on high-end models. Owners of high-end cars like regular hybrid and more-advanced plug-in hybrid electric vehicles (PHEV) - with more advanced engines - are paying less auto tax, he said, just because those models are designed with smaller displacement to burn less... The BMW i3 is priced in the 60 million won range, but the existing tax code levies a minimum basic tax of 130,000 won because it doesn’t have an internal combustion engine and a number for engine displacement. So far, owners of regular passenger cars with engines lower than 1,000 cc engine displacements must pay 80 won per cubic centimeter. Owners cars with 1,600 cc and lower must pay 140 won per cc, and those cars bigger than 1,600cc pay 200 won per cubic centimeter. Source: koreajoongangdaily.joins.com
