Kim Ki-hyun Proposes Permanent Abolition of Tax Burden on Infant Diapers and Formula

Infant Diapers and Formula Milk Classified as Tax-Exempt Goods Like Women's Sanitary Pads

[Asia Economy Reporter Naju-seok] A bill to permanently abolish value-added tax applied to diapers and infant formula has been proposed in the National Assembly. Instead of extending the tax exemption benefits through the National Assembly, the purpose is to make diapers and infant formula permanently tax-exempt goods, completely eliminating the possibility of tax burden on their prices.

[Image source=Yonhap News]

On the 11th, Kim Ki-hyun, a member of the People Power Party, announced that he is promoting the "Mom Comfortable Act," which aims to reduce childcare expenses by abolishing taxes imposed on diapers and infant formula.

Current law provides a value-added tax exemption benefit for the supply of diapers and infant formula, but it is operated temporarily. According to the current legal provisions, the tax exemption period expires on December 31 of next year. So far, the National Assembly has chosen to operate the tax exemption system by setting a period of 2 or 3 years. Although these products are essential daily necessities absolutely necessary during infancy, the intention was to alleviate childcare expenses considering that prices could rise if tax burdens were imposed.

In this regard, Representative Kim is the main proposer of amendments to the "Restriction of Special Taxation Act" and the "Value-Added Tax Act" that define tax exemption for diapers and infant formula as tax-exempt goods like women's sanitary pads. If the amendment passes the National Assembly, the tax burden will be permanently eliminated without the need for future extensions of the tax exemption period.

Representative Kim said, "Diapers and infant formula are essential goods that cannot be missing when raising infants regardless of economic conditions," adding, "Although we have alleviated the tax burden on ordinary people by extending the tax exemption period, there is a need to convert and manage these as tax-exempt goods for more stable household burden relief, which is why we are promoting this legislation."