"Government to Adjust Beer and Takju Tax Rates Flexibly Amid High Inflation and Price Increase Slowdown"

Excise Tax Rate Flexibly Applied Within 50% Range of Consumer Price Inflation

[Asia Economy Reporter Koo Eun-mo] As inflation continues day by day, the government is improving the tax rates on beer and Takju by applying them flexibly within 50% of the consumer price inflation rate to ease the burden on consumers.

According to the '2022 Tax Reform Plan' announced by the Ministry of Economy and Finance on the 22nd, the price-linked tax system for beer and Takju will be revised.

Under this tax reform plan, the liquor tax on beer and Takju can be flexibly adjusted by the government each year within 50% of the consumer price inflation rate. Depending on the consumer price inflation rate, the government can lower or raise the rate applied to the liquor tax within the 50% range. Previously, the tax rate was adjusted annually by applying the consumer price inflation rate to the previous year's tax rate.

The Ministry of Economy and Finance explained that the revision is to apply a price fluctuation index considering tax fairness with other alcoholic beverages subject to specific tax, changes in ex-factory prices, and price stability. The revision will apply to alcoholic beverages shipped from manufacturing plants or imported after April 1 next year.

The government plans to announce this tax reform plan for legislative notice starting today, and after going through the Cabinet meeting, submit it to the regular National Assembly session in September.