Song Eon-seok, Senior Deputy Floor Leader of the People Power Party, speaking. / Photo by Yoon Dong-ju doso7@
[Asia Economy Reporter Ryu Tae-min] The ruling and opposition parties have reached a consensus to reduce the burden of lunch prices for office workers by expanding the tax-exempt meal allowance for workers from the current 100,000 won to 200,000 won.
According to political circles on the 2nd, Song Eon-seok, the senior deputy floor leader of the People Power Party, proposed a partial amendment to the Income Tax Act in mid-last month to expand the tax-exempt limit on meal allowances included in workers' monthly salaries to 200,000 won.
The current law, which defines the amount within 100,000 won per month of meal allowances included in workers' monthly salaries as tax-exempt income, was revised in 2003. Song stated that there have been criticisms that it has not reflected the reality of price fluctuations at all. The amendment also includes expanding the tax-exempt limit on childcare allowances for children under six years old included in workers' monthly salaries from the current 100,000 won to 200,000 won.
Park Hong-geun, the floor leader of the Democratic Party of Korea, also attended a field visit meeting of the Livelihood Priority Practice Group the day before and said, "We will raise the tax-exempt meal allowance from the current 100,000 won to 200,000 won and retroactively apply it from January of this year. We will pass the 'Meal Cost Support Act' at the next extraordinary session of the National Assembly."
Park criticized, "The dining-out price index in May rose 7.4% compared to the same month last year, marking the highest level in 24 years," adding, "Households are struggling due to high prices and rising interest rates, and even Deputy Prime Minister for Economy Choo Kyung-ho's remarks asking to refrain from excessive wage increases are like pouring oil on fire for office workers."
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