Environment Ministry aims to boost additional tax collection rate for diesel car owners

Individual diesel vehicle owners are now able to pay additional taxes for environmental purposes in January, along with other general payments for vehicle usage, the Environment Ministry said Tuesday. 

The ministry said the revision of the payment date for diesel vehicle users, who were required to pay additional taxes separately in March, will help increase the annual tax collection rate, which now stands at 40 percent.

Around 5 million drivers have to pay additional taxes for their diesel vehicles -- some of which are widely blamed for air pollution -- but they had to pay them separately from other car-related taxes. Such inconvenience was one factor behind the low tax collection rate from diesel vehicle owners, a ministry official told The Korea Herald. 

Last year, the total amount of additional taxes for diesel vehicle owners was nearly 1.2 trillion won ($1 billion), but only 462 billion won was collected.

To encourage drivers to opt for more environmentally friendly cars, the ministry also adopted a new state emissions rating regulation that divides all vehicles into five categories based on their levels of air pollutant emissions, with grade one being the most environmentally friendly.

Under the new rating system that went into effect last month, diesel vehicles score grades three through five.

By Bak Se-hwan (sh@heraldcorp.com)