Cars imported for R&D gets tax waiver

South Korea’s Ministry of Strategy and Finance announced that automobiles imported for use in research and development (R&D) projects will be exempted from the individual consumption tax starting January 1, 2009. This is part of the government’s plans to support the development of eco-friendly auto technology. About 320 vehicles are imported each year for use in R&D projects and the measure will cut importing costs by between 1 million won (US$740.85) and 10 million won (US$7,408.54). Cars imported for R&D purposes are currently subjected to the same tax rate as vehicles imported for personal use, which is 10% for cars with engine displacements larger than 2 liters and 5% for those with engine displacement of 2 liters or less. (December 31, 2008)