2003-10-14 09:08

TSRC suggests government hike fuel subsidy for coastal ships

The Transportation System Reformation Committee (TSRC) recommended that the government expand its fuel subsidy for coastal ships to a 100% tax exemption from the current 50% Oct. 7. The coastal shipping business will receive a 4 billion won reduction from tax this year and 10.3 billion won next year under the fuel subsidy. Suffering from accumulated deficit and losing competitiveness, the industry at large is looking to improve its balance sheets and for the tax exemption to help companies stay afloat.

The Korea Shipping Association has also tried to push the tax exemption bill through the National Congress this year.

Coastal ships, buses and taxies have requested that they also receive the same subsidy as cargo trucks. Last July the government agreed to wholly subsidize additional increases in gasoline for cargo trucks in connection with the trucking strikes. The government ordered the TSRC to prepare concrete plans for the whole transportation system. The TSRC consists of citizen parties, experts, related companies, press and government, and aims to prepare better ways for the industry after close scrutiny and analysis of current systems, current operating conditions, foreign cases and government support situations.
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