60,000 Small Business Owners Who Did Not Receive the 4th Disaster Relief Fund... Addressing the Blind Spots

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] Small business owners have demanded that the government come up with measures, citing many blind spots in the distribution of disaster relief funds to respond to COVID-19.

The 'Support Plus (4th Disaster Relief Fund) Semiannual Sales Comparison Exclusion Business Emergency Countermeasures Committee,' composed of small business owners, held a press conference in front of the National Assembly on the 2nd, urging, "Resolve the issue of non-payment of the 4th disaster relief fund before distributing the 5th disaster relief fund."

The committee claimed, "There are as many as 60,000 small business owners who were subject to business restrictions but were judged ineligible for the 4th disaster relief fund."

The committee pointed out, "General taxpayers receive VAT standard certificates semiannually, but small-scale simplified and tax-exempt business owners were excluded from eligibility because it is difficult for them to provide semiannual certification."

They further argued, "Disaster relief funds should be universally provided to businesses restricted by COVID-19 regardless of sales comparisons."

The government paid 4.77 trillion won in Support Plus funds to 2.91 million small business owners whose annual or semiannual sales decreased due to COVID-19 quarantine measures such as gathering bans, business restrictions, or industries in economic crisis starting from April this year.

However, simplified taxpayers who report sales annually and opened their businesses last year were excluded from eligibility because they had no way to prove semiannual sales.

The committee demanded ▲ extension of the Support Plus appeal period ▲ recognition of semiannual sales proof for simplified and tax-exempt business owners ▲ establishment of measures to resolve blind spots in the 5th disaster relief fund ▲ participation of small business representatives such as the Small Business Federation in the Loss Compensation Deliberation Committee.

The government is considering a method to verify sales decline using card sales and other data when distributing the 5th disaster relief fund (Hope Recovery Fund) to reduce blind spots.

An official from the Ministry of SMEs and Startups said, "We are consulting with the National Tax Service on measures that consider cash receipts, electronic tax invoices, card sales, and so on."