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SEOUL, July 30 (Reuters) – South Korea plans to expand its tax on thermal coal, while lowering the tax on liquefied natural gas (LNG) to support the use of cleaner fuels for power generation, the finance ministry said on Monday .
The Ministry said it would increase the cost of fossil fuel consumption by 10 to 46 won ($ 0.0412) per kilogram.
Meanwhile, the government plans to lower the tax on LNG to 23 won per kg from 91.4 won per kg.
Asia's fourth-largest economy, which imports almost all of its energy needs, has favored coal and nuclear power to generate cheaper electricity and to ensure stable power supply.
South Korea now generates more than 70 percent of its share of power and coal, while renewables account for 6 percent.
Under the country's power supply plan, it will fall to 36.1 percent in 2030 and nuclear to 23.9 percent, but these sectors will still make up more than half of the country's total power generation SOUTHKOREA-POWER / TAX [19659002] The revised tax is expected to come into effect by April 1, 2019, should the government plan be approved by parliament. ($ 1 = 1,115,9000 won) (Reporting By Jane Chung Editing by Eric Meijer)
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