There are subsidies for buying new energy vehicles in China, and there are also many overseas countries. Because new energy vehicles are not subsidized, the price is relatively expensive, and consumers' enthusiasm for purchasing is not high. In order to stimulate the development of the new energy automobile industry, various countries have introduced subsidy policies.
In this article, we will look at the amount of subsidies for new energy vehicles in South Korea.
Purchase tax exemptions for electric and hybrid models, which were scheduled to end at the end of the year, have been extended. In the next three years, the electric vehicle purchase tax reduction can be reduced, and the hybrid vehicle purchase tax can be reduced to next year.
On December 28, South Korea's Ministry of Home Security announced amendments to the Local Special Tax Restriction Act. It plans to expand its purchase tax reduction and exemption concessions to promote the development of new energy vehicles.
Specifically, the EV purchase tax relief will continue until December 31, 2024. The eviction tax is limited to 1.4 million won (7,516 yuan) and is exempt from the purchase tax when the purchase tax is less than 1.4 million won (7,516 yuan), and the purchase tax is deducted from the total purchase tax by 1.4 million won (7,516 yuan) when the purchase tax exceeds 1.4 million won (7,516 yuan). In other words, the purchase tax varies with the price of the car, but the amount of the purchase tax deduction is fixed.
The purchase tax for ordinary passenger cars is 7% of the purchase price (excluding VAT). For example, for an electric vehicle worth 55 million won (295,100 yuan), the purchase tax is 3.85 million won (20,660 won), but only 2.45 million won (13,147 won) is paid after the 1.4 million won (7,516 yuan) reduction.
For reference, China's subsidy standards for new energy vehicles in 2021, "pure electric passenger cars with a mileage of less than 300 kilometers without subsidies, and pure electric passenger cars with a cruising range of 300-400 kilometers (including 300 kilometers) have dropped to 13,000 yuan; The subsidy for pure electric passenger cars over 400 kilometers (including 400 kilometers) fell to 18,000 yuan. ”
All purchase taxes for pure electric vehicles are reduced or reduced.
However, in the South Korean market, not all electric vehicles are eligible for purchase tax relief. According to the "Eco-friendly Vehicle Requirements" of the Ministry of Industry, Trade and Resources, ultra-small, light and small vehicles must meet the energy consumption efficiency (fuel efficiency) standard of 5.0km/h or more, and medium- and large vehicles must meet the standard of 3.7km/h or more. Among the models released in Korea, Mercedes-Benz's mid-size SUV "EQC" (3.2km/h), Audi's "e-tron 50 quattro" (3.0km/h), Porsche's "Taycan" (2.9km/h) and so on) do not meet this standard and are not subject to purchase tax relief.
Korean hybrids also contain oil-electric hybrids, which also include plug-in hybrids. It's just that the subsidy for hybrid cars is relatively small. Hybrid vehicle purchase tax is exempt from the purchase tax amount of 400,000 won (2146 yuan) until December 31, 2022. To encourage the purchase of pure electric vehicles, the government has decided to support the purchase tax relief for hybrid vehicles until next year. The purchase tax relief limit for hybrid vehicles continues to be reduced from 1.4 million won (7,512 yuan) in 2019 to 900,000 won (4,829 yuan) in 2020 and the amount of subsidies for 400,000 won (2,146 yuan) this year is declining year by year.