Korean Parties Agree to Exclude Luxury Appliances from Tax Cut Jul 11, 2003

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South Korea's ruling and opposition parties agreed on Thursday to exclude luxury home appliance products from proposed excise tax cuts.

The ruling Millennium Democratic Party and the main opposition Grand National Party concurred on not exempting projection TVs and PDP TVs from the special consumption tax and not cutting the excise tax rate for air-conditioners from 20 to 16 percent.

The accord came after the parties agreed to lower the excise tax rate on cars with engine capacities of 2,000 cc and lower to 5 percent. The rate would be reduced from 14 to 10 percent for cars with engine capacities of more than 2,000cc.

In addition, they agreed on a 2.5-per cent cut in income taxes for workers earning less than 30 million won (U.S. $25,440). (Asia Pulse)

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