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Foreign Automakers Won’t Offer Refunds Despite Tax Cuts

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Major foreign brands selling cars in South Korea have decided not to offer any refunds to their customers despite the government’s recent tax cut, claiming that it has already been reflected in their ramped-up sales promotions, company officials said yesterday.

The government ended a 1.5-percentage-point excise tax cut at the end of last year. But once it expired, car sales dropped significantly, which promoted the government in early February to extend the consumption-boosting scheme until June.

The reduced tax rate will be applied retroactively on cars bought in January.

Some foreign auto brands including Volkswagen, BMW and Mercedes-Benz, however, have decided not to offer any refunds to customers, claiming that the tax cut was already reflected in their price tags and it was well notified to customers.

Source: Busan eFM News


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