South Korea delays smog tax; starts emission trading in 2015 - finance minister

Source: Reuters - Tue, 2 Sep 2014 05:37 GMT
Author: Reuters
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SEOUL, Sept 2 (Reuters) - South Korea has delayed a proposed tax on vehicle carbon emissions by over five years to the end of 2020, but confirmed it would push ahead with plans to begin its carbon emissions trading scheme from the start of 2015, finance minister Choi Kyung-hwan said on Tuesday.

The finance ministry said in a meeting with other ministers that the so-called smog tax, which has already been postponed by more than two years, would place too much of a burden on industry if it was launched at the same time as the carbon trading scheme.

The delay in the so-called smog tax had been widely expected, with people familiar with the matter saying the levy could slash domestic sales by up to 10 percent at the country's largest automaker Hyundai Motor Co.

(Reporting by Meeyoung Cho; Editing by Richard Pullin)

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