[THE INVESTOR] The government announced July 28 it will provide up to 4 million won (US$ 3,557) tax reduction on hydrogen fuel cell vehicles until the end of 2019. 

The measure included in the tax revision is aimed at boosting the country’s renewable energy businesses’ competitiveness. Until now, reduction in the 5 percent special consumption tax was only provided to electric vehicles and hybrid vehicles. For hybrid vehicles, the tax was cut by up to 1 million won, and by up to 2 million won for electric vehicles. The government also plans to increase support for businesses linked to hydrogen fuel cell vehicles.

In addition to the new tax benefit for hydrogen fuel cell vehicles, the government said that income and corporate taxes will be cut by 30 percent for SMEs that operate electric vehicles for business. To be eligible, 50 percent or more of the vehicles used for business need to be electric.

By Choi He-suk (cheesuk@heraldcorp.com)