Tax Breaks for Fuel-Efficient Hybrid Cars Only

Hybrid cars with sub-standard fuel efficiency will not be eligible for tax breaks. The Ministry of Knowledge Economy on Monday announced a new tax break standard for hybrid car owners. Under the regulation beginning on July 1, models eligible for tax breaks up to W3.1 million (US$1=W1,286) are Hyundai Motor’s Avante LPI hybrid, the Honda Civic Hybrid and the Lexus RX450h.But only hybrid cars with fuel efficiency ratings of 50 percent or higher qualify, and nominal voltage has to exceed 60 volts. Cars only equipped with IGS systems, which turn the engine off when the vehicle has come to a stop, will not be eligible. (July 1, 2009)