Yang Bunam: "Extension of Acquisition Tax Reduction for Casper and Electric Vehicles"

‘Local Tax Special Exception Act’ Amendment Passes Standing Committee
Legislative Achievement for Gwangju-type Jobs and Economic Revitalization

Yang Bunam, Member of the National Assembly.

Yang Bunam, a member of the Democratic Party of Korea (representing Gwangju Seo-gu Eul), announced on the 20th that the amendment to the “Restriction of Special Local Taxation Act,” which extends the acquisition tax reduction for compact cars such as Casper and electric vehicles, passed the first subcommittee of the National Assembly’s Public Administration and Security Committee on the 19th.

The amendment maintains the acquisition tax reduction for compact cars, extending the 100% acquisition tax benefit (up to 750,000 KRW) for three more years until December 31, 2027. The existing benefit of a 1.4 million KRW reduction for electric vehicles will also be maintained until 2026.

As the acquisition tax reduction for compact cars was set to expire at the end of this year, the government proposed a new plan to reduce the acquisition tax by 400,000 KRW starting next year. However, Representative Yang proposed an amendment to continue the exemption of up to 750,000 KRW.

With the passage of these two bills, positive effects are expected for the sales of “Casper” (including electric vehicles) produced at Gwangju Global Motors, leading to the revitalization of related industries and the creation of indirect employment. The total benefits for consumers purchasing Casper vehicles produced in Gwangju are estimated to be around 60 billion KRW.

Representative Yang played a pivotal role in passing this bill. When bills to revitalize the Gwangju regional economy and support citizens were put on hold, he persuaded both ruling and opposition parties of the necessity of the amendment, leading to its passage.

Representative Yang stated, “I am very pleased that the passage of this bill will provide practical support for the livelihoods of ordinary citizens and secure the sustainability of the Gwangju-type job project,” and added, “Since the sales of Casper vehicles are crucial for the success of Korea’s first win-win regional job model, I will continue to thoroughly review and promote legislation for Gwangju’s economic leap and the development of future-oriented industries.”