VAT 10% Exemption... Coffee Bean Prices Expected to Decrease Starting August

[Asia Economy Sejong=Reporter Kim Hyewon] The purchase price of coffee beans (raw beans) is expected to decrease somewhat as early as August.

The Ministry of Agriculture, Food and Rural Affairs announced on the 4th that "major coffee raw bean import and distribution companies have stated plans to supply coffee raw beans at prices reduced by the amount exempted from value-added tax (VAT) for import declarations made after June 28."

The import companies include Blessbean, Woosung MF, MI Coffee, and GSC International.

When coffee raw beans are imported into the country, it typically takes about two months for customs clearance, repackaging, and delivery. Therefore, consumers purchasing coffee beans are expected to experience a slight reduction in the burden of purchasing beans as early as August.

Jeon Han-young, Food Industry Policy Officer at the Ministry of Agriculture, Food and Rural Affairs, said, "This VAT exemption on coffee raw beans is a measure to somewhat reduce the increased import cost burden caused by exchange rates and other factors. We will closely cooperate with import and distribution companies to ensure that benefits reach consumers as soon as possible."

The Ministry will continue to encourage the industry to implement this VAT exemption measure on simply processed food products and coffee raw beans without disruption and will continuously monitor whether the reduction is reflected in actual consumer prices.

Earlier, on May 30, as part of the 'Emergency Livelihood Stabilization 10 Major Projects' jointly announced by related ministries, the Ministry of Agriculture, Food and Rural Affairs proposed a temporary VAT exemption plan for simply processed food products and coffee raw beans. Since the 1st of this month, items such as kimchi, doenjang, gochujang, soy sauce, salted seafood, and pickled radish individually packaged in vinyl, bottles, or cans can be sold at prices excluding the 10% VAT.

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