April 11, 2011

South Korea to lift chicken tax to stabilise prices

The South Korean government will temporarily remove levies on two more key food items including chicken to boost supply and thereby restrain rising inflation.

The Ministry of Strategy and Finance on Friday (Apr 8) said it will remove its import tariff on flour, the price of which greatly affects prices of commonly consumed items such as bread and noodles. The removal of the tariff, which was previously cut to 2.5% from 4.2%, will come into effect after the related law's enforcement ordinance is revised.

"Recently, global grain prices are holding high, posing a burden to price stability ahead," the finance ministry said.

It also said it will remove the tariff on chicken for shipments of up to five tonnes.

The government in March removed its 20% tariff on egg-laying hens for shipments of up to one million heads to stabilise the price of eggs.