South Korea to raise coal tax; lower LNG tax for power generation

SEOUL: South Korea plans to increase its tax on thermal coal, while lowering the tax on liquefied natural gas (LNG) to support the use of cleaner fuels for power generation, the finance ministry said on Monday.

The ministry said in a statement that it will increase the tax on thermal coal by 10 won to 46 won ($0.0412) per kilogram reflecting environmental costs of using the fossil fuel.

Meanwhile, the government plans to lower the tax on LNG to 23 won per kg from 91.4 won per kg.

Published in The Economic Times, 30th July, 2018