Government to Revise Taxes to Boost the Economy | Economic Bulletin

KDI 경제교육·정보센터

Economic Information and Education Center

발행물

Policy Issue

Government to Revise Taxes to Boost the Economy

Jun 2019

EB 6_Issue.pdf

I. Expand corporate inheritance tax incentives

Revision

Frameworks
- Help those wanting to inherit companies
- Stress that the companies be managed responsibly and honestly
- Take into consideration fast changing business environment

Revisions
1. Relax obligations incurred due to the tax credit
2. Add responsibility provisions and relax other requirements

II. Lower individual consumption taxes

1. Liquor Tax

The government has drawn up revisions to liquor tax, which will be applied to beer and unstrained rice wine. According to the revision, beer and unstrained rice wine will be taxed based on the amount of alcohol they contain, instead of the current price-based taxation.

2. Auto Tax

The government has drawn up a revision to extend the cut for auto purchases, from 5 percent to 3.5 percent, to the end of 2019. If extended, it will be the third time for the tax cut to be granted. It was first given in 2018 from July 19 to December 31, and then extended to June 30, 2019. The auto tax cut has boosted sales so far as the sales went up 2.2 percent year-on-year in the second half of 2018, and 0.1 percent this year until April.

* For further details, please refer to the attached file