Acting President Choi: "Prioritizing Livelihood Economy Recovery... Extending Fuel Tax Cut for 2 Months"

Livelihood Economy Review Meeting Held on the 6th

Choi Sang-mok, Acting President and Deputy Prime Minister as well as Minister of Economy and Finance, announced on the 6th, “The government will prioritize the recovery of the people’s livelihood economy as the top task of economic policy and mobilize all policy measures,” adding, “The temporary reduction of the fuel tax, which is set to end at the end of February, will be extended for two months until the end of April.”

Yonhap News

On the 6th, Acting President Choi held a meeting on the people’s livelihood economy with Song Mi-ryeong, Minister of Agriculture, Food and Rural Affairs, Kang Do-hyung, Minister of Oceans and Fisheries, consumer organizations, and others at Yangjae Hanaro Mart, where he made this announcement.

The government decided to extend the temporary fuel tax reduction on transportation fuels (gasoline -15%, diesel and LPG -23%), which was scheduled to end on the 28th, for an additional two months until April 30. To this end, on the 7th, it gave legislative notice of amendments to the Enforcement Decree of the Transportation, Energy and Environment Tax Act and the Enforcement Decree of the Individual Consumption Tax Act, respectively.

Acting President Choi said, “We will hold weekly meetings to monitor the people’s livelihood economy and prepare a first-quarter response plan for livelihood and economy,” adding, “We will mobilize all policy measures available to the government, including amendments to enforcement decrees and rules, expansion of policy finance, and temporary regulatory relief, to restore the people’s livelihood economy.”

He also stated, “We will closely consult with the National Assembly through the State Affairs Council to ensure that key livelihood bills, such as the amendment to the Restriction of Special Taxation Act to expand income deductions for consumption at small business stores and to introduce accelerated depreciation special cases for small and medium-sized enterprise facility investments, can be processed at the February extraordinary session of the National Assembly.”

He continued, “To stabilize grocery prices, an additional 30 billion won will be invested in discount support for agricultural and marine products during February and March,” adding, “We will also promptly introduce 370,000 tons of fruit and vegetable tariff quota.” The government plans to supply more than 200 tons daily to wholesale markets using available government stocks for high-priced items such as cabbage and radish. Furthermore, “We will hold a refund event for Onnuri gift certificates during the March Donghaeng Festival to reduce the burden on consumers and expand the sales base of small business owners.”

The government plans to conduct weekly joint on-site inspections by ministries on petroleum products, seaweed, and other daily necessities, and crack down on illegal distribution activities.