Heavier Tax on Diesel
The Korean government is looking to raise its tax on diesel fuel for particulate matter reduction. Specifically, what it is planning to do is raise the price of diesel fuel, which is currently around 85% of the price of gasoline, to at least 90%.
Those opposed to the plan are claiming that it will pose a significant burden on ordinary people like the most recent cigarette price adjustment in January 2015 and the government’s assumption that diesel vehicles are the main culprit of particulate matter generation is ill-founded.
In South Korea, a total of 20.99 million vehicles were registered and 41.1% of them were diesel vehicles as of the end of 2015. Those diesel vehicles include more than three million trucks and only some of them are given a fuel subsidy from the government. This means that the others are likely to take a direct hit from a rise in the price of diesel fuel.
South Korean President Moon Jae-in has promised to reduce particulate matter emissions by at least 30% before the end of his term by driving out private diesel vehicles by 2030. The Ministry of Strategy & Finance explained that the government’s plan to that end, which will be made public in an upcoming hearing, is merely the result of a research recently entrusted by the government and the government will make its final decision in a very prudent way after gathering opinions from all walks of society.