-Controversy over securing excessive tax revenue contrary to purpose
-Confusion of consumers on ambiguous tax basis
At the end of February, the Ministry of Land, Infrastructure and Transport enacted a new camper law. The new amendment contains information that it is possible to tune a camper in all types of vehicles, including passengers, cargo, and special vehicles, beyond the form that only 11 or more passenger cars could be converted into a camper.
In response to the increasing population of camping and the increasing demand for camping cars, positive responses have been received not only from the government but also from industry and consumers. The Ministry of Land, Infrastructure and Transport said that it is meaningful that the regulation has been relaxed, and that it is suitable as a market revitalization plan. In addition, with this measure, it is expected that a market of about 130 billion won will be created as 6,000 units are converted into campers annually. The camper industry has welcomed the stance that it is looking forward to revitalizing the tuning market and creating new jobs.
However, the new amendment was overwhelmed by tax controversy before even seeing light. The fact that various taxes are added due to remodeling and registration can increase the consumer burden. Previously, it was only necessary to pay 10% of the VAT according to the cost of the remodeling, but now it is necessary to pay additional individual consumption tax and education tax.
The problem is that depending on the case, the vehicles subject to the tax are different. The National Tax Service has set the basic rules for individual consumption tax, and stipulates that the existing tax rate for camping cars exceeds 50% of the basic car price. To put it simply, if you installed one of the camping car facilities (catering facilities, washrooms, sinks, tables, toilets) prescribed by the Enforcement Regulations of the Automobile Management Act by spending 5 million won in excess of 5 million won on a used car of 10 million won currently registered as a camping car. Individual consumption tax must be paid. On the other hand, if it is installed for 49.9 million won, it is not subject to the opening tax, so the existing VAT is ended.
So, how are taxes levied on existing passenger cars that are the biggest beneficiaries of the new camper law? The National Tax Service said that if all or part of a used car’s parts are processed or converted into a new camping vehicle, it is also subject to taxation. When converting a used car into a motorhome, it means that you must pay an additional individual consumption tax regardless of the cost of the modification. If you do this, you have to buy a 10 million won SUV or a minivan and pay for it regardless of the amount, whether it is converted for 100,000 won or 10 million won.
-In the case of existing passenger cars, taxation is subject to the cost regardless of the remodeling cost.
-‘Double taxation’ personality is strong and does not fit equity
Of course, when you purchase a new car for the first time, if you add a camping facility while operating a van or a van with more than 9 passengers exempt from individual consumption tax, the industry interpretation is that the individual consumption tax is reasonable as the nature of the car changes from business to leisure. . However, in the case of passengers except for this, the’double taxation’ is inevitably strong as it pays the opening tax when purchasing the first car. This is the reason for the growing voice of criticism that it is a tax for taxes, and that the amendment to secure tax revenue is not an act of activating the camping car tuning among businesses and consumers considering camping car tuning.
Industry experts pointed out that it was not even fair for the taxation standards. The new camper method aims at lowering the barrier to entry and revitalizing anyone by easily converting the car to camping. However, the tax would be more taxed by the major consumer groups in the market expansion to convert passenger cars to camping, and less tax to make the people who had existing camping cars more colorful with money. Therefore, if the order is not corrected according to the equity, the need to tune in the camper with high taxes will be eliminated and the demand will disappear.
Regarding the tax controversy, the Internal Revenue Service said it was not intentionally a way to raise more taxes. In addition, he added that it is natural to impose additional taxes on the car and the converted motorhome when it was first purchased, as it is imposed on the specific product itself. However, he said that he is considering the industry and consumer needs, and that he is considering it.
Nevertheless, the complicated and complicated tax logic and many types and high ratios are not easily understood. Since there is also a problem with the equity of each vehicle type, the voice of demanding a systematic tax structure in line with the new camper law is increasing. If the burden comes on and the belly button is bigger than the belly, the government’s efforts to revitalize as well as the tuning industry can be lost.
In fact, there is a lot of confusion among the camper industry and consumers who want to remodel. An official from the company complained, “There is an increasing number of consumers who are struggling with cost setting and eventually put off or give up camping.” Securing tax revenue in this way can be a shortcut to retreating the domestic camper market as well as market soundness.
Reporter Kim Seong-hwan firstname.lastname@example.org
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