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S KOREAN GOV'T UNLIKELY TO CUT OIL TAXES SOON.
SEOUL, Sept 1 Asia Pulse - The government does not plan to lower taxes on oil anytime soon, despite growing political calls for tax cuts, a senior official at the Ministry of Finance and Economy said Wednesday.
Lawmakers from both the ruling Uri Party and the main opposition Grand National Party have called on the government to reduce oil taxes, citing high oil prices are hurting overall spending and putting pressure on consumer prices, which have risen 3.6 percent so far this year.
"Our understanding is that lawmakers will push for cuts if oil prices continue to go up," Lee Jong-kyu, deputy minister for tax and customs, said. "But the government will proceed cautiously on this matter as once taxes are cut, it is difficult to raise them again.
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