Firm Denial of Taxation Plan for Livelihood Recovery Consumption Coupons
Democratic Party Considering Expansion of Credit Card Income Tax Deduction
Jin Sungjun, Policy Committee Chairman of the Democratic Party of Korea, drew a clear line on July 17, stating that the imposition of income tax on livelihood support payments and the expiration of the income tax deduction for credit card use are not under consideration. He added that the party is, in fact, reviewing the possibility of expanding the credit card income tax deduction.
At a policy coordination meeting held at the National Assembly that day, Chairman Jin responded to remarks made by Kim Jungjae, Policy Committee Chairman of the People Power Party, who had mentioned the imposition of income tax on livelihood support payments and the expiration of the credit card income tax deduction. Jin said, "He is distorting the facts with baseless speculation." He added, "The Democratic Party has never considered taxing the consumption coupons for livelihood recovery. There is no reason for the Democratic Party to discuss a tax plan that would undermine the effect of income support."
Chairman Jin stated, "While there have been suggestions from some quarters as an idea to enhance fairness, I want to make it clear that the party has absolutely no such plans. The consumption coupons for livelihood recovery are not subject to taxation. The same was true for the emergency relief funds provided during the COVID-19 crisis."
He emphasized, "The consumption coupons for livelihood recovery are not simply cash support. They are an economic policy designed to support household income, stimulate consumption, and increase sales for small business owners and the self-employed, thereby creating a virtuous cycle for the recovery of the people's economy." He continued, "I urge the government not to be swayed at all by attempts from some in the political sphere to undermine this policy, and to make every effort to ensure the smooth distribution of consumption coupons. In particular, please ensure that vulnerable groups, such as the elderly and people with disabilities who may have difficulty accessing information, do not miss out on receiving these coupons."
Regarding the credit card income tax deduction, Chairman Jin said, "At a time when boosting consumption and supporting income is more urgent than ever, ending the credit card income tax deduction would run counter to these goals. I want to make it clear that the Democratic Party is instead reviewing ways to expand the deduction."
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