Parents of Samdungi exempted from '3 million won' car acquisition tax... Non-taxation of childbirth and childcare allowance under discussion in the National Assembly

[Asia Economy Sejong=Reporter Son Seon-hee] The new government's tax reform plan includes support measures to encourage childbirth. For households with three children (under 18 years old), individual consumption tax will be exempted up to a maximum limit of 3 million won. In addition, the child allowance per child has been set at 800,000 won, an increase of 100,000 won from the previous amount.

However, the expansion of the tax-exempt limit for childbirth and childcare allowances, which has been fixed at "100,000 won per month" for 18 years, was not included in this reform plan, but there is a possibility of further discussion in the National Assembly.

According to related ministries on the 24th, the tax exemption system for childbirth and childcare allowances has maintained a monthly limit of 100,000 won since its introduction in 2004. Considering inflation during this period, there are calls to increase the tax-exempt limit for childbirth and childcare allowances.

The tax exemption for childbirth and childcare allowances is a system that provides income tax exemption benefits up to 100,000 won per month per worker for allowances that companies provide to employees or their spouses for childbirth or childcare of children under six years old. According to data received by Representative Kim Seung-won of the Democratic Party from the National Tax Service, 470,000 to 480,000 people annually have received tax exemption benefits worth around 300 billion won over the past three years. The majority of workers receiving these benefits were employed by companies with "30 or fewer employees." The representative's office analyzed that this means the system is helping workers in smaller companies.

However, since the tax-exempt limit has been maintained for nearly 20 years, opinions have emerged that it should be increased considering inflation and the low birthrate situation. Representative Kim plans to soon propose an amendment to the Income Tax Act to raise the tax-exempt limit for childbirth and childcare allowances to 200,000 won per month per child. He stated, "The government plan should be reconsidered to become a practical reform that can improve livelihood issues and current and future economic risk factors, such as expanding the tax exemption for childbirth and childcare allowances."

Meanwhile, Representative Song Eon-seok, who serves as the senior deputy floor leader of the People Power Party, has also proposed a bill to expand the tax-exempt limit for childcare allowances for children under six from 100,000 won to 200,000 won, so related legislative discussions are expected to take place in the National Assembly in the future.

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