Carmakers urge cuts in oil-related taxes to boost demand

Local carmakers have proposed that the government implement steps to boost domestic consumption, including a reduction of oil-related taxes. The Korea Automobile Manufacturers Association (KAMA) proposed that the South Korean government implement steps to boost domestic consumption, including a reduction of oil-related taxes, as taxes account for 63.9% of gasoline prices and 48.3% of diesel prices in the country. Local carmakers also want an expansion of automobile financing and leases, incentives for the purchase of new vehicles and more funding for research and development for vehicle manufacturers. (March 1, 2009)