From Today, VAT on Simple Processed Food Products 'Zero'... Minister Jeong Hwang-geun During On-site Inspection

[Asia Economy Sejong=Reporter Kim Hyewon] Jeong Hwang-geun, Minister of Agriculture, Food and Rural Affairs (photo), visited Emart Sejong on the 1st to check the prices of grocery items. In particular, he went to inspect the implementation of the VAT exemption on simply processed food products, which took effect from that day.

The government decided to temporarily exempt VAT on simply processed food products to reduce food expenses such as kimchi and sauces, expanding the scope from products with temporary plastic packaging to individually packaged kimchi, doenjang, gochujang, soy sauce, salted seafood, and pickled radish in bottles and cans. Minister Jeong also conducted an on-site inspection of the sales status of Canadian pork belly and neck meat, which have been imported with zero tariffs since the 22nd of last month.

At the site, Minister Jeong said, "In a situation where the consumer price index rose to the 5% range for the first time in 14 years in May, economic and livelihood stability is our government's top priority policy task," adding, "It is very important to stably manage the prices of agricultural and livestock products and food items that the public experiences daily."

As of June 28, the volume of pork imported under the tariff quota was 2,450 tons, which is 5% of the total planned volume for the second half of 2022 (50,000 tons). If the planned quota volume is fully imported as scheduled in the second half, the share of pork from Canada, Mexico, and Brazil in total imports is expected to increase from 9% in 2021 to 20% in 2022.

Minister Jeong stated, "In the long term, domestic pork self-sufficiency and market expansion should be achieved, but in the current high-price period, if prices rise to the consumer resistance level in the short term, it may rather hinder the expansion of the domestic pork market," urging large marts to contribute to price stabilization of livestock products through continuous discount events.

He continued, "Thanks to the thorough prior preparations by distribution companies in anticipation of the VAT exemption on simply processed food products, sales can now be made at prices excluding the 10% VAT, and additionally, distribution companies themselves are conducting discount events ranging from 10% to 60% by item," expressing his gratitude.