National Tax Service Extends Payment Deadlines for Traffic Tax and Liquor Tax by 3 Months for Refining and Liquor Industries

Effect of Alleviating Financial Burden Amounting to a Total of 20.554 Trillion Won

[Asia Economy Reporter Kwangho Lee] The government is extending the payment deadlines for April's transportation, energy, and environmental taxes, individual consumption tax, and liquor tax (including education tax) by three months to alleviate the burdens on the petroleum and liquor industries struggling due to the novel coronavirus infection (COVID-19).

The National Tax Service (NTS) explained on the 22nd, "Based on relevant laws and regulations and the decision of the Tax Support Promotion Team, this decision was made to support the temporary financial burdens faced by petroleum and liquor companies."

Currently, the petroleum industry is experiencing increased difficulties in financing across the sector due to the global spread of COVID-19, which has led to decreased oil demand, falling oil prices, expanded petroleum inventory valuation losses, and refining margin losses.

The liquor industry is facing severe operational difficulties as the domestic market shrinks, liquor shipment volumes sharply decline, and cash assets decrease throughout the industry.

The NTS expects that the three-month deferral until July will ease financial burdens amounting to a total of 2.0554 trillion KRW, including 1.3745 trillion KRW for the petroleum industry and 680.9 billion KRW for the liquor industry.

Meanwhile, the NTS has provided tax support totaling 5.25 million cases and 19.7 trillion KRW in scale to taxpayers affected by COVID-19 to date, including deadline extensions and collection deferrals.

For taxpayers affected by COVID-19 in sectors such as food service and lodging, the deadlines for filing and payment of corporate tax, value-added tax, and comprehensive income tax have been extended within a three-month range (including collection deferrals). Applications for deadline extensions by affected taxpayers are also actively reviewed and approved.

Additionally, year-end adjustments for earned income tax and value-added tax refunds are being paid 10 days earlier than the deadline, and correction claims are being processed more quickly (from two months to one month).

The NTS stated, "We will continue to provide tax support to taxpayers facing significant business crises due to national disasters or other unforeseen circumstances."

This content was produced with the assistance of AI translation services.