South Korea MOF Announces 2026 Flexible Tax Rate Plan for Fuel, Individual Consumption Taxes

The South Korean Ministry of Economy and Finance Dec. 24 announced a flexible tax rate plan for the first half of 2026. The announcement includes: 1) an extension to Feb. 28, 2026, from Dec. 31, 2025, to the temporary rate reductions to 7 percent from 10 percent for gasoline, and to 10 percent from 15 percent for diesel and liquefied petroleum gas (LPG) butane; 2) an extension to June 30, 2026, from Dec. 31, 2025, to the reduced individual consumption tax for automobiles; and 3) the Dec. 31 sunset date for the temporary reduction to the individual consumption tax rate ...