Reasons for Proposal and Major Provisions

For purposes of national economic efficiency, the current Act provides an elastic tax rate system that tax rates may be adjusted within the limit of 30% of the tax rates by Presidential Decree, where necessary to provide financial resources required for the support business to cope with oil price fluctuations and where necessary to meet the supply of and demand for gasoline, diesel, and similar alternative petroleum products.

Recently, however, the price of various energy raw materials, including oil and natural gas, has been rising because of the strengthening of international economic sanctions due to the war between Russia and Ukraine, and although the Government cut the tax rate to 30% to adjust the price to consumers, it is difficult to confirm whether large oil refineries, which are obligated to pay traffic, energy, and environment taxes, have reflected this in the final consumer price.

Therefore, this amendment aims to provide a legal basis for requesting taxpayers to submit data prescribed by Presidential Decree, such as the domestic wholesale prices of taxable articles before and after the tax rate adjustment, when the Government cuts traffic, energy, and environment taxes with the elastic tax rate system (Article 21 (3) and (4), newly inserted).

Act No.