The South Korean government has decided to extend the temporary reduction in fuel taxes until the end of September due to ongoing military tensions in the Middle East.
During a Cabinet meeting held at the Government Seoul Complex on July 28, officials reviewed and approved 20 presidential decrees, five general agenda items, and one report.
The amendment to the Enforcement Decree of the Traffic, Energy, and Environment Tax Act extends the temporary reduction in the traffic, energy, and environment tax on gasoline, diesel, and similar alternative fuels from July 31 to September 30.
Prime Minister Han Seung-soo stated, "The uncertainties in the Middle East remain, and the domestic and international conditions, including new U.S. tariffs and worsening youth employment, are challenging."
He emphasized, "Even while the President is on an overseas trip, he is taking care of measures for people's livelihoods, such as the maximum price system for oil and the reduction of fuel taxes. The Cabinet must remain vigilant and do its utmost for economic stability and growth."
The Cabinet also passed an amendment to the Individual Consumption Tax Act, extending the temporary reduction in the individual consumption tax on butane, as well as an amendment to the Enforcement Decree of the Oil and Oil Substitute Fuel Business Act, which exempts the sales levy on liquefied petroleum gas (LPG) butane until the end of the year.
President Lee Jae-myung instructed during a video conference with senior aides on July 27, while on a trip to South America, to maintain the maximum price system for oil and to keep policies like fuel tax reductions in place until the uncertainty in oil prices is resolved.
Prime Minister Han expressed hope regarding President Lee's trip to the U.S. and South America, stating, "South Korea will build a global AI cooperation network and become a key country in an indispensable supply chain within the global AI ecosystem."
He added, "We will also expand the supply chain of essential resources such as key minerals and energy through close cooperation with resource-rich South American countries, and I urge relevant ministries to ensure that the outcomes of the trip translate into tangible changes for the people and businesses."
During a Cabinet meeting held at the Government Seoul Complex on July 28, officials reviewed and approved 20 presidential decrees, five general agenda items, and one report.
The amendment to the Enforcement Decree of the Traffic, Energy, and Environment Tax Act extends the temporary reduction in the traffic, energy, and environment tax on gasoline, diesel, and similar alternative fuels from July 31 to September 30.
Prime Minister Han Seung-soo stated, "The uncertainties in the Middle East remain, and the domestic and international conditions, including new U.S. tariffs and worsening youth employment, are challenging."
He emphasized, "Even while the President is on an overseas trip, he is taking care of measures for people's livelihoods, such as the maximum price system for oil and the reduction of fuel taxes. The Cabinet must remain vigilant and do its utmost for economic stability and growth."
The Cabinet also passed an amendment to the Individual Consumption Tax Act, extending the temporary reduction in the individual consumption tax on butane, as well as an amendment to the Enforcement Decree of the Oil and Oil Substitute Fuel Business Act, which exempts the sales levy on liquefied petroleum gas (LPG) butane until the end of the year.
President Lee Jae-myung instructed during a video conference with senior aides on July 27, while on a trip to South America, to maintain the maximum price system for oil and to keep policies like fuel tax reductions in place until the uncertainty in oil prices is resolved.
Prime Minister Han expressed hope regarding President Lee's trip to the U.S. and South America, stating, "South Korea will build a global AI cooperation network and become a key country in an indispensable supply chain within the global AI ecosystem."
He added, "We will also expand the supply chain of essential resources such as key minerals and energy through close cooperation with resource-rich South American countries, and I urge relevant ministries to ensure that the outcomes of the trip translate into tangible changes for the people and businesses."
* This article has been translated by AI.
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