Controversies about Special Excise Tax Exemption of `Room-Salon,` Opposition Party Criticizes

Lawmakers of the ruling and opposition parties are arguing about a policy that exempts the amusement bars such as room salons and cabarets from special excise tax for 2 years.

Rep. Hong Jun-Pyo (GNP) asserted, "the amusement bars are actually managed by the mobs. It is not appropriate to exempt the amusement bars from special excise tax while maintaining the imposition of the tax to golf, horse race, or cycling race."

Rep. Lee Han-Gu agreed with Rep. Hong, questioning "[Would the government] want to change the special excise tax reduction bill to `support a mob bill`?"

Jin Nyum, Economy Minister, explained "the purpose of the special excise tax of the amusement bars is not to promote the economy but to prevent the illegal activities. Since the introduction of the Liquor Purchase Card System in July, the taxation imposed to the amusement bars has been clarified, the National Tax Service requested for the reduction of special excise tax for the sake of equal tax duty."

As controversies persisted, Rep. Chung Se-Gyun (NMPD) offered a moderate opinion which states that, "The decrease of the special excise tax of amusement bars might be against the national sentiment. And after legalizing the tax basis, if the taxation is too heavy, [the government] could reduce the special excise tax perhaps from 20 percent to 10 percent, considering the sentiment of the people."

Meanwhile, the National Assembly will review the revised bills related with special excise tax prior to the other taxation bills presented by the ruling and opposition parties.

Rep. Na Oh-Yon (GNP), chairperson of finance and economy committee, said that "the basic position of the party is to review the special excise tax, corporation tax, and income tax simultaneously, considering the tax revenues for next year. However, because of the urgency of the special excise tax reduction, the committee will deal with the revised bill of the special excise tax right after the ruling and opposition parties reach an agreement."

Lee Hoi-Chang had requests `to reduce the special excise tax today` from the 5 economic organizations leaders and suddenly turned to the earlir revision, urging the finance and economy committee to quickly pass the bill.

Yeon-Wook Jung jyw11@donga.com