Korea Extends Tax Cut in Bid to Boost Car Sales

South Korea is extending a 30% cut in its consumption tax on cars for another six months to bolster sagging auto sales in the country.

the government lowered the tax to 3.5% from 5% last July. The incentive has been extended twice since then but had been scheduled to end on June 30.

Reuters reports that Korea’s finance ministry agreed to another extension after data showed the country’s economy shrank by 0.4% in the first quarter of 2019 rather than the 0.3% estimated previously. The ministry estimates the new extension will save consumers about 100 billion won ($85 million).