S. Korea to extend 30% passenger car tax cut by another 6 months

South Korea plans to extend a 30 percent cut in the consumption tax on passenger cars by another six months in a bid to boost domestic demand.

The tax cut was set to expire at the end of June.

The South Korean government slashed the auto consumption tax in July 2018 and has continued to extend it to increase domestic demand.

While the country is on a recovery track due to brisk exports of autos and chips, domestic demand recovery remains weak.

Sales by South Korean carmakers jumped 77 percent in April from last year on robust overseas demand for SUVs.

However, domestic sales dropped 6.6 percent on-year to 135,601 units last month.