Korea Announces $3,600 Tax Incentives to Spur EV Sales
Executive Summary
The Korean government expects the tax breaks to drum up business for auto makers charged with producing 1 million electric vehicles by 2020.
The South Korean government on Dec. 1 will begin providing tax breaks of up to $3,600 for buyers of electric vehicles.
The Ministry of Knowledge Economy says all EV buyers will receive a 5% reduction in the consumption tax, a 12% cut in the education tax and other discounts up to 20%.
Every Korean auto maker is developing EVs, and the government has set a production target of 1 million units by 2020, with 70% of them earmarked for export. The vehicles are expected to generate 40 trillion won ($34.3 billion) in sales.
The ministry says in a statement the new regulations “aim at securing consistency by establishing standards for electric vehicles and their fuel efficiency.
The government will continue adjusting and improving its policy so that it advances EVs and related technologies, in light of the need for widescale distribution of electric vehicles.”
