[Asia Economy Reporters Lee Ji-eun and Kwon Hyun-ji] Ryu Seong-geol, a ruling party whip of the National Assembly's Planning and Finance Committee from the People Power Party, demanded that the opposition agree to raise the special deduction limit for the Comprehensive Real Estate Holding Tax (종합부동산세) and presented the card of "raising the minimum fair market value ratio to 70%."
On the morning of the 11th, at the People Power Party's National Assembly audit countermeasure meeting, Ryu said, "October 20 is the deadline for the amendment of the Restriction of Special Taxation Act (조특법)."
The ruling party is pushing for an amendment to the Restriction of Special Taxation Act to raise the special deduction standard for one-household one-homeowners, but the opposition has so far refused to agree to raise the tax credit standard, arguing that the government already preemptively lowered the fair market value ratio to 60%, which amounts to a "tax cut for the rich."
In response, Ryu proposed that the ruling and opposition parties discuss raising the tax credit standard for the Comprehensive Real Estate Holding Tax on the condition that the fair market value ratio be raised from the current 60% to 70%. Ryu said, "The amendment bill must pass the Planning and Finance Committee within this week," adding, "Even if the Restriction of Special Taxation Act amendment passes, couples with joint ownership of one home will not be able to avoid the burden."
He warned, "Since the enforcement decree (which sets the fair market value ratio at 60%) was already amended and implemented on August 2, the 70% application will likely start next year," and added, "There are only 10 days left to implement an agreement between the ruling and opposition parties. If they do not actively agree, the Democratic Party will have to take responsibility for this year's Comprehensive Real Estate Holding Tax."
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