[세종=이데일리 조용석 기자] The government is considering extending the measures to reduce the individual consumption tax (individual tax) for passenger cars, which ends at the end of next month, until the end of the year. Measures are also being planned to stabilize the price of daily necessities, such as flour and diesel, where prices are on the rise.
According to the Ministry of Strategy and Finance on the 22nd, the government is planning to announce measures to counter high inflation and stabilize the living of ordinary people at the end of this month, including measures to lower the car sales tax. They are considering measures to alleviate the difficulties of the people at a time when the inflation rate is threatening the 5% range due to rising oil prices.
First, the government is known to have taken the lead in extending the measures to lower the vehicle sales tax. The sales tax is a tax levied together with education tax and value-added tax when purchasing a car.
The government lowered the passenger car opening tax by 30% from 5% to 3.5% for one year and six months from July 2018 to 2019. applied In the second half of 2020, the cut was returned to 30%, but after that, it continued to be extended every six months, continuing the cut until the end of June.
If the passenger car sales tax cut ends as scheduled at the end of June, the cost of purchasing a vehicle for consumers will increase significantly, which is highly likely to lead to additional inflation burden. In addition, it seems that the government’s consideration of extending the reduction in the consumption tax reflects the delay in the shipment of passenger cars due to raw material price hikes and logistical disruptions.
If the retail tax is cut by 30% for six months, the tax revenue could be reduced by nearly 400 billion won. However, it is reported that the government has already reflected the resulting decrease in tax revenue in the revenue of the second supplementary budget bill.
The government plans to promote the already announced measures for flour and diesel, and to prepare supplementary measures if necessary. Previously, the government lowered the standard price of subsidies linked to oil prices from 1,850 won per liter (L) to 1,750 won, and for flour, on condition of minimizing price increases by mills, 70% of the price increase required by the national treasury was provided for a limited time. It has been included in the appendix.
The government also plans to actively check the order status to prevent sudden price hikes and disturbances in the distribution process for daily necessities, processed foods, and food ingredients. We will also take strict measures against collusion.