S. Korean gov't announces plans to reform liquor tax system
- 5 years ago
정부, 주세 50여년만에 종량세로 개편…맥주•막걸리 먼저
The South Korean government is changing its taxes on alcoholic beverages... to try and boost private investment in the industry.
For consumers, it could have the added benefit of lower prices.
Ko Roon-hee reports.
Since 1968, taxes on alcoholic beverages in Korea were based on their prices.
This meant that companies making expensive beverages paid more tax, which caused firms to cut costs in many fields such as R&D.
But Korea's finance ministry has unveiled new plans to reform the alcohol tax system. The new measures says taxes on beer and makgeolli will be based on volume or alcoholic content... instead of price.
The government plans to include the changes in this year's tax reform proposal... and submit it to the National Assembly in early September.
If approved, the change is likely to take effect starting next year.
Finance chief Hong Nam-ki explained how this change will contribute to improving the nation's economy.
"These changes in the tax system will revitalize the craft beer industry...which has relatively big potential to create jobs. Also, if beer production increases in Korea, employment will boost in upstream and downstream industries. Facilities investment will increase as well."
Minister Hong added that the change will be limited to these two alcoholic beverages, considering the rapid impact it could have on the liquor industry.
With the change,... tax on beer will come to around 70 cents per liter,... meaning consumers will be able to enjoy cheaper canned and craft beer.
The announcement comes after many beer companies criticized the current system for the unfair differences in taxes between domestic and foreign brands.
Ko Roon-hee, Arirang News.
The South Korean government is changing its taxes on alcoholic beverages... to try and boost private investment in the industry.
For consumers, it could have the added benefit of lower prices.
Ko Roon-hee reports.
Since 1968, taxes on alcoholic beverages in Korea were based on their prices.
This meant that companies making expensive beverages paid more tax, which caused firms to cut costs in many fields such as R&D.
But Korea's finance ministry has unveiled new plans to reform the alcohol tax system. The new measures says taxes on beer and makgeolli will be based on volume or alcoholic content... instead of price.
The government plans to include the changes in this year's tax reform proposal... and submit it to the National Assembly in early September.
If approved, the change is likely to take effect starting next year.
Finance chief Hong Nam-ki explained how this change will contribute to improving the nation's economy.
"These changes in the tax system will revitalize the craft beer industry...which has relatively big potential to create jobs. Also, if beer production increases in Korea, employment will boost in upstream and downstream industries. Facilities investment will increase as well."
Minister Hong added that the change will be limited to these two alcoholic beverages, considering the rapid impact it could have on the liquor industry.
With the change,... tax on beer will come to around 70 cents per liter,... meaning consumers will be able to enjoy cheaper canned and craft beer.
The announcement comes after many beer companies criticized the current system for the unfair differences in taxes between domestic and foreign brands.
Ko Roon-hee, Arirang News.