Support for fuel costs for light vehicles, increase from 200,000 won to 300,000 won per year: Biz N

provided by the IRS

Starting this year, if you have one compact car (passenger/van) with a displacement of less than 1,000cc per household, you can save up to 300,000 won in fuel costs per year. When a small car owner purchases gasoline or diesel through a fuel purchase card, they receive a discount of 250 won per liter and 161 won per liter of liquefied petroleum gas (LPG).

The National Tax Service announced on the 10th that it will increase the fuel cost subsidy limit for compact vehicles from 200,000 won to 300,000 won per year from this year to expand support for the low-income and self-employed who are experiencing economic hardship due to the novel coronavirus infection (COVID-19). The fuel cost subsidy limit was first introduced in 2008, and at the time of its introduction, the annual limit was 100,000 won. After raising it to 200,000 won in 2017, it has been increased by 100,000 won more for the first time in five years.

The target of the support is consumers who own a compact car with a displacement of less than 1000cc, and the sum of each car or van owned by the owner of the compact car and a family living together according to resident registration must be one rental. For example, if each household has one compact car and one general van, it is supported because they are different car models. Likewise, even if you own a light car and a light van, both vehicles are supported. However, if you own a compact car and a regular car, you cannot get support because you have the same car model. Also, even if you own a compact van and a regular van, you cannot receive support because they are of the same type.

You must not be a person with a disability or a person of national merit who is a beneficiary of an oil price subsidy. The target compact cars include Casper, Morning, Twizy, Matiz, Spark, and Damas Coach.

To receive fuel tax support, you must obtain a fuel purchase card from Lotte, Shinhan, or Hyundai Card. This card can only be applied for by one credit card company, and is issued by the credit card company after the National Tax Service verifies whether the applicant is eligible for support. Applications can be made online, by phone or in person.

The scope of refund is 250 won per liter for gasoline and diesel, and 161 won per liter for LPG. However, the LPG exchange amount is 128 won until April 30 of this year. When the benefit recipient purchases fuel with a fuel purchase card, the refund amount is deducted from the card amount, so there is no need to apply for a separate refund.

If the fuel purchase card is used by another person or in another vehicle, a 40% penalty is imposed along with the fuel tax. In addition, the owner of the compact vehicle may be excluded from the fuel cost subsidy.

Sejong = Reporter Kim Hyung-min [email protected]