South Korea to start fuel-economy based auto taxes

South Korea says it will stop using engine displacement as the basis for setting automobile taxes and instead use fuel-efficiency and greenhouse gas emissions, starting as early as 2011. The move is aimed at promoting sales of environment-friendly cars, as the new method will reduce taxes for hybrid and electric models, promoting their sales. The change is also seen as a preparation for the planned mass production in 2011 of electric vehicles by domestic leader Hyundai Motor Co. A detailed plan for the new tax system is expected to be compiled by the end of the year, and a revision to the relevant law will be made accordingly. (February 24, 2010)