Excise tax rate will drop 5% points

As special consumption tax on domestic household appliances are lowered, tax levied on appliances imported after July 12 will be redeemed late this month.

The Ministry of Finance and Economy expressed that a customs law revision plan to reduce tax on imported appliances such as PDPs, televisions and air conditioners by 5% points will be submitted to the National Assembly next week and may be come in force late this month.

Special consumption tax on domestic products will be reduced as the following – 1% to 0.8% on PDPs and televisions, 20% to 16% on air conditioners and heaters. Tax levied on imported products is the combination of special consumption tax and customs, called a rate for imported PDPs and televisions will be each reduced from 25% to 50% and 20% to 45%.

The reduction will cause the prices of imported household appliances to go down to about 100 thousand Won.

The Ministry of Finance and Economy said that there is no revising operation in practice to for reduction benefits on imported products currently, but when the bill is officially announced and it will have force on products imported since July 12, the same day the bill was passed.

Source from Yonhap News, July 21, 2003, Reporter Dae-ho Kim