Government to Push for Amendment of Levy Act... Mandatory Maximum 10-Year Duration Set

Deliberation and Resolution on the Amendment to the Basic Act on Levy Management

The government is undertaking a comprehensive revision of the Burden Charges Act for the first time in 22 years since its introduction, aiming to reduce the public's burden related to charges and strengthen the management system.

Choi Sang-mok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance (center) [Image source=Yonhap News]

On the 29th, the government reviewed and approved the amendment to the 'Basic Act on Burden Charge Management' at the Cabinet meeting. This amendment is a follow-up measure to the 'Plan to Improve Burden Charges and Strengthen the Management System' announced at the 23rd Emergency Economic and Livelihood Meeting in March, designed to enhance the management system of burden charges and protect the rights and interests of the public.

Through this amendment to the Basic Act on Burden Charge Management, the government decided to set a mandatory maximum duration of 10 years for the existence of burden charges. To ensure stricter management, a system to assess the validity of newly introduced burden charges will also be implemented. Additionally, a Burden Charge Dispute Mediation Committee will be established to promptly resolve disputes related to burden charges. The amendment also includes provisions to supplement the definition of burden charges considering Constitutional Court precedents and to allow the rate of additional charges to be set by enforcement ordinances.

The government plans to submit the amended Basic Act on Burden Charge Management to the National Assembly in early next month. Along with the 21 bills to repeal or amend 18 burden charges submitted in July, the government will actively cooperate with the National Assembly to ensure the swift passage of the Basic Act amendment.

The Ministry of Economy and Finance stated, "If this amendment passes the National Assembly, it will be possible to continuously review and improve burden charges whose validity weakens due to changes in economic and social conditions," adding, "We expect to establish an institutional foundation that can promptly remedy infringements on the rights and interests of the public caused by burden charges."

Prior to this, the government announced through the plan to improve burden charges and strengthen the management system that it would abolish or reduce 32 burden charges, thereby reducing the annual burden on citizens and businesses by about 2 trillion won and strengthening the management system to continuously review the validity of burden charges. Accordingly, the enforcement ordinance revisions for the reduction of 12 burden charges, including the Electricity Industry Infrastructure Fund charge, have been completed, and the 21 bills to repeal or amend laws for abolishing 18 burden charges, including the School Site Burden Charge, were submitted to the National Assembly in July.

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