[2023 National Audit] Choo Kyung-ho: "Tax Discrimination Between Domestic and Imported Alcoholic Beverages Must Be Resolved"... Considering Introduction of Standard Sales Rate

Criticism of Reverse Discrimination Between Domestic and Imported Alcoholic Beverages at the National Audit

The government has decided to actively consider introducing a 'standard sales ratio' for domestic alcoholic beverages to resolve the tax discrimination issue between domestic and imported alcoholic beverages.

On the 26th, at the comprehensive audit of state affairs held by the National Assembly's Planning and Finance Committee, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho responded to a question from Yoon Young-seok, a member of the People Power Party, asking, "Do you agree that the standard sales ratio system introduced for automobiles should also be introduced for alcoholic beverages to enhance tax fairness between domestic and imported alcoholic beverages?" by stating that it will be actively considered.

On the same day, Representative Yoon pointed out, "For domestic distilled liquor or whiskey, if the manufacturing cost is 20,000 won, the tax amount is 26,000 won, whereas for imported alcoholic beverages with an import cost of 20,000 won, the import tax amount is 18,000 won," adding, "While the tax system serves the function of securing tax revenue, it also has the aspect of revitalizing the industry through fair competition in related industries, so the current tax system seems unreasonable."

Furthermore, Representative Yoon questioned National Tax Service Commissioner Kim Chang-gi, "The standard sales ratio system was introduced for domestic automobiles in the first half of the year; is there a need to introduce such a system for domestic alcoholic beverages to improve tax fairness?" The standard sales ratio is a system introduced in July this year to correct the imbalance in individual consumption tax between domestic and imported automobiles.

Regarding this, Commissioner Kim also stated, "If the standard sales ratio system is introduced, it will be possible to resolve the fairness issue between domestic and imported alcoholic beverages," and added, "We will actively review this issue and consult with the Ministry of Economy and Finance."

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