South Korea has announced plans to extend tax reductions on imported fruits and introduce a lower-tariff scheme for food materials as part of efforts to combat inflation, Finance Minister Choi Sang-mok revealed on Tuesday.
The government’s move includes extending the tariff reduction on imports of 28 varieties of fruits, such as bananas, pineapples, mangoes, and cherries, which was originally set to expire by the end of June. However, Choi announced that this measure will now be extended until the end of 2024, speaking at a prices-related ministers’ meeting in Seoul.
In addition to fruit imports, the government will also extend tariff reductions on 12 food materials, including sugar and coffee beans. Furthermore, a quota-based tariff adjustment scheme will be introduced for an additional seven types of food materials, including butter and whole milk powder.
Choi emphasized the government’s commitment to stabilizing prices amidst concerns over inflation. “Despite the gradual easing of inflation, the overall level of prices has heightened to cause a burden on the people. The government will strive for stabilizing prices further,” he stated, urging companies to participate in these efforts.
According to data from Statistics Korea, consumer prices rose by 2.7 percent year-on-year in May, compared to a 2.9 percent increase in April. This marks the second consecutive month of slowed price growth, with the figure remaining below 3 percent.
Choi expressed optimism about the trajectory of inflation, stating, “Consumer prices are forecast to stabilize to reach around mid-2 percent or below in the second half if we do not have additional shocks.”
The finance ministry projects a 2.6 percent increase in prices for the year.
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