Prices of Charyeju including Cheongju and Yakju Reduced by up to 5.8%

National Tax Service Decides on Standard Sales Ratio Review
530,000 KRW Price Reduction on 80 Million KRW Camping Car

The prices of traditional liquors such as Cheongju and Yakju will be reduced by up to 5.8%. The consumer prices of camping cars will also decrease. This is due to the application of the standard sales ratio for these products, which lowers the tax base.

On the 11th, the National Tax Service announced that it has reviewed and decided on the standard sales ratios for domestic fermented liquors, other alcoholic beverages, and camping vehicles to stabilize prices and support public leisure activities.

The standard sales ratio is the rate applied when determining the taxable base for individual consumption tax. Domestic liquors are taxed based on the manufacturing cost plus advertising and labor expenses, whereas imported beer is taxed only on the import declaration price and customs duties. This has led to claims of reverse discrimination against domestic liquors. To address this, the government introduced the concept of the standard sales ratio as a tax discount rate last year.

The newly decided standard sales ratios are ▲Cheongju 23.2%, ▲Yakju 20.4%, ▲Fruit wine 21.3%, ▲Other alcoholic beverages 18.1%, and ▲Camping cars 9.2%.

With the application of the standard sales ratio, the factory prices of domestic fermented liquors such as Cheongju and Yakju will decrease by up to 5.8% starting next month. For example, Baekhwaseubok (700ml), currently priced at 4,196 KRW, will drop to 3,954 KRW, a reduction of 242 KRW (5.8%). The factory price of one bottle of Cheongha will decrease by 96 KRW (5.8%) from 1,669 KRW to 1,573 KRW. Filite Fresh, classified as other alcoholic beverages, will see a price reduction of 33 KRW (4.5%) from 717 KRW to 684 KRW per can.

An official from the National Tax Service explained, "Since January 1 this year, the application of the standard sales ratio to soju has led large retailers and convenience stores to reduce retail prices by up to 200 KRW per bottle, easing consumer burden and stabilizing prices. For example, the price of a 360ml bottle of Chamisul has dropped by more than 132 KRW per bottle due to the effect of the soju standard sales ratio."

Applying the standard sales ratio to camping vehicles will lower the tax base by 9.2% from April 1 this year, resulting in a consumer price reduction of 530,000 KRW for a factory shipment price of 80 million KRW.

According to the National Tax Service, passenger cars, which first had the standard sales ratio applied in July last year, saw a 1.3% increase in sales volume from July to November compared to the same period in the previous year.