Jung Jun-ho: "VAT Exemption for 우등 and Premium Express Buses"

'Value-Added Tax Act Amendment' Proposed... "Support for Metropolitan Transportation System"

Assemblyman Jeong Junho.

On the 13th, Jeong Junho, a member of the Democratic Party of Korea representing Gwangju Buk-gu Gap, announced that he has proposed an amendment to the Value-Added Tax Act to exempt value-added tax on premium and deluxe express buses.

Under the current law, value-added tax is exempted only for regular express buses, which account for 16% of express buses, and Saemaeul-ho trains, while premium and deluxe buses, which make up 84% of all buses, are subject to the tax.

However, there have been criticisms that passengers are being discriminated against since deluxe buses cannot be considered as high-end transportation. Moreover, concerns have arisen that the foundation of regional metropolitan transportation could be shaken due to the reduction of bus routes and driver attrition following COVID-19.

The amendment was proposed to reduce the burden on passengers by exempting value-added tax on premium and deluxe buses and to promote universal transportation welfare by maintaining and preserving metropolitan transportation networks in areas without railway infrastructure.

Jeong emphasized, “Express buses are not only more affordable and accessible compared to KTX or airplanes but also serve as a key mode of transportation responsible for metropolitan transit outside the capital region. We must continue to support the increasingly difficult metropolitan transportation system to maintain appropriate routes and suppress unnecessary fare increases, thereby delivering tangible benefits to the public.”