Seoul City "Pay Environmental Improvement Charge at Once and Get 10% Discount"

Lump-Sum Payment (Annual Payment) Application Available Until the 31st

[Asia Economy Reporter Seong Giho] The Seoul Metropolitan Government announced on the 13th that owners of old diesel vehicles who make a lump-sum payment (annual payment) of the automobile environmental improvement charge by January 31 will receive a 10% discount on the charge amount again this year.

The environmental improvement charge is implemented to induce the reduction of environmental pollutant emissions by imposing environmental improvement costs on diesel vehicles (Euro 4 grade or below), which are major sources of air pollution. As of the end of December last year, it is scheduled to be imposed on 156,386 diesel vehicles.

The charge amount is calculated based on the vehicle's age, vehicle registration area, and engine displacement. The collected charges are used for air and water environment improvement projects, low-pollution technology development research, and natural environment conservation projects.

According to the Environmental Improvement Cost Burden Act, the environmental improvement charge is imposed twice a year (first term in March, second term in September), but a discount benefit can be received if paid in a lump sum (annual payment). If paid in a lump sum in January, a 10% discount is applied to both the first and second term charges, and if paid in March, a 10% discount is applied to the second term charge. By utilizing the annual payment system, discounts ranging from a minimum of 15,000 KRW to a maximum of 78,000 KRW can be received.

To receive the discount benefit for this year's charges, vehicle owners must apply by phone or visit the environmental department of the autonomous district where the vehicle is registered by the 31st of this month. Payment must be completed within the deadline, and if not paid, the annual payment application will be automatically canceled.

Applications for annual payment are accepted year-round, and once applied and paid, an annual payment notice will be issued every January. Payments can be made through eTax, the Seoul City Tax Payment app, bank ATMs, designated accounts, ARS, and Internet Giro.

If there is a change in registration location, transfer of ownership, vehicle cancellation, or exemption from charges before June 30 after lump-sum payment, the environmental improvement charge will be recalculated and the difference refunded.

If the jurisdiction changes due to an address change, a new lump-sum payment report must be submitted to the newly moved autonomous district. Since the environmental improvement charge is a post-payment system imposed semiannually, if vehicle ownership is acquired after January 1, the lump-sum payment cannot be applied for in that year.

Kim Jeongseon, Director of the Climate and Environment Policy Division of Seoul City, said, “The environmental improvement charge is imposed on diesel vehicles that emit a large amount of air pollutants based on the polluter pays principle, and the collected charges are used for environmental improvement projects. We hope that citizens actively use the lump-sum payment system to receive tax discount benefits and participate in reducing fine dust.”