Fuel Prices to Rise as Tax Breaks End
22 August, 2019
Gasoline and diesel prices will rise W58 and W41 per liter in September as tax breaks come to an end on Aug. 31 (US$1=W1,204).
The Finance Ministry decided not to extend the tax incentives.
Last year, the ministry cut fuel taxes by 15 percent between last November and April this year to galvanize the economy and stabilize people's livelihood. It extended the incentives in April for another four months at seven percent.
The ministry made the decision because oil prices have come down and overall tax revenues are expected to be reduced significantly this year as a result of the recession.
Fuel taxes that would have been collected over the past 10 months without the tax breaks would have amounted to W2.6 trillion, according to the ministry.
Dubai crude oil prices that at one point hovered at US$60 to $70 per barrel have dropped to $50 this month.
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