"Preventing the Excessive Spread of Cash-Based Welfare"
The government has decided to impose a penalty by reducing the general grant tax support for local governments that provide universal heating cost support.
According to an official from the Ministry of the Interior and Safety on the 8th, the government revised the enforcement regulations for the general grant tax at the end of last year and has been implementing them since January 1st.
The Ministry of the Interior and Safety is known to have imposed penalties on local governments where the proportion of cash-type welfare expenditures is higher than the median level among local governments with similar overall expenditure ratios. Additionally, the official explained that heating cost support targeted at basic livelihood security recipients, low-income households, and near-poverty groups is not subject to the grant tax penalty.
They also added that the penalty-related details have already been communicated through city and provincial meetings.
The Ministry explained that the revision of the general grant tax penalty regulations aims to prevent the excessive spread of cash-type welfare for fiscal soundness. Since the general grant tax is calculated based on data from two years prior, the revised content will be applied starting with the 2025 general grant tax support.
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