Proposal to Introduce a New "Childbirth Promotion Tax"
Economic organizations in the Gwangju region have called on the candidates for the 21st presidential election to include solutions to the low birth rate issue in their campaign pledges.
The Gwangju Employers Federation released a press statement on the 12th, saying, "While the birth rate has been declining recently, the proportion of the elderly population continues to rise, and as a result, there is growing consensus that Korea has entered an era of aging and low birth rates. Now is the time for the entire business community to seriously consider solutions to the low birth rate problem," the group stated.
The organization explained, "In the 1960s, there was a period when strong birth control policies were implemented. At that time, the country was still recovering from the war and facing severe poverty, so the government made efforts to limit excessive births."
The statement continued, "Along with these policies, as opportunities for women to participate in society increased, the birth rate continued to decline. As a result, South Korea now has one of the lowest birth rates in the world. Since 2001, the country has entered an ultra-low birth rate society, and the seriousness of this issue has only grown. Despite long-standing efforts to find solutions, the government has yet to come up with a clear answer."
The group also pointed out, "A sharp decline in the birth rate and rapid aging can weaken the nation's overall competitiveness and, in the long term, lead to labor shortages in industry and a decrease in the consumer population. The government has so far attempted to address the low birth rate by strengthening policies to encourage childbirth, expanding childcare facilities, improving housing conditions, changing social attitudes, and providing education and information. However, these measures have not achieved significant results."
Furthermore, the organization proposed, "As a solution to the low birth rate issue, the government should introduce a new indirect tax (tentatively called the Childbirth Promotion Tax). Currently, value-added tax, individual consumption tax, and distribution tax (customs duties) are the main forms of indirect taxes. If the government takes national responsibility and creates a new indirect tax to realistically support and implement childbirth incentives, housing funds for newlyweds, child education expenses, and marriage support funds, the low birth rate problem could be resolved."
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