Overview

Individual Consumption Tax (Special Excise Tax) in South Korea is levied on the manufacture or import of specific luxury or environmentally sensitive goods, including passenger cars, jewelry, petroleum products, tobacco, and certain electronics. Tax may be ad valorem (price-based) or specific (quantity-based) depending on the item. Education Tax (30% of consumption tax) and VAT are also added.

Formula

Passenger cars: Factory price x 5%. Jewelry/precious metals: 20% on amount exceeding KRW 5M per item. Petroleum: fixed amount per liter (gasoline KRW 529/L, diesel KRW 375/L, etc.). Total = Consumption Tax + Education Tax (30% of consumption tax) + VAT (10%).

How to Use

1. 1Select the item category (passenger car, jewelry, petroleum, electronics, etc.).
2. 2Enter the price or quantity of the item.
3. 3Click Calculate to see consumption tax, education tax, VAT, and total tax.

Tips

• ✔Temporary passenger car consumption tax cuts (to 3.5%) may be implemented as government stimulus; check current policy.
• ✔Electric and hybrid vehicles are subject to consumption tax but may qualify for reductions.
• ✔Jewelry and precious metals are exempt below KRW 5M per item; 20% applies only to the excess.
• ✔Petroleum consumption tax may have flexible rates (plus or minus 30%) depending on oil price conditions.
• ✔Consumption tax is paid by manufacturers or importers but is included in the final consumer price.

FAQ