▲ President Moon Jae-in presided over the 4th Emergency Economic Conference on Corona 19 response

By June of this year, the check and credit card usage deduction rate for corona19 victims such as food, lodging, tourism, performance, and passenger transportation will increase unprecedentedly to more than five times the level of the existing.

If an individual business or corporation purchases goods or services that need to be purchased in the second half of this year from a small business owner, 1% of the purchase amount will be deducted from income and corporate tax.

The government and public institutions plan to generate as much as 3,300 billion won in demand through pre-payment and pre-purchase, including construction supplies, consumables, business promotion costs, and ticket purchases.

The government said on the 8th that the 4th emergency economic meeting hosted by President Moon Jae-in confirmed this, and decided to supplement the domestic demand through prepayment and pre-purchase.

Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance said in a briefing at the emergency economic meeting on the day. "If you provide cash liquidity, you will be able to provide practical help to thirsty small business owners, self-employed people and small and medium-sized businesses."

From this month to June, the deduction rate of credit and check card use in corona19 victims such as food, lodging, tourism, performance-related business, and passenger transportation business will increase to 80%.

A government official said, "Until June, the income deduction rate for affected industries hit by a direct hit with Corona 19 is radically expanded to induce prepayment for tickets, performance tickets, and travel packages for the second half of next year or this year." We look forward to helping the airline industry. "

Earlier, the government announced comprehensive measures to overcome the corona19, and the deduction rate for workers' credit card use amount was 15 to 30% in March and June, and the amount of check card and cash receipt use was 30 to 60%. The market and public transportation use amount has been raised temporarily from 40 to 80%.
In addition, the amount of credit card and check card use in the corona19 victims' industry is set to increase the income deduction rate from the existing 15-30% applied until February this year to 80%, up to five times more.

It is to increase the income deduction benefit for the amount of money used by workers, such as credit cards, debit cards, and cash receipts, in excess of 25% of the total salary.

However, the credit limit for annual card use is 3 million won or less of the total salary of 70 million won or less, 2.5 million won for 70 million to 120 million won, and 2 million won for more than 120 million won.

The government also decided to deduct 1% of the income tax and corporate tax on each purchase amount when individual businesses or corporations pre-paid and pre-purchase goods or services required for business in the second half (July to December) from small businesses.

The government expects that this will have the same effect as paying interest on the amount you purchase earlier.

The government and public institutions pay 90 billion won in advance to the catering industry and 80% of the contract amount for the airline industry (160 billion won), international events, and regional festivals (140 billion won). Through this, we plan to reinforce the demand for the damaged industry by 2,110 billion won.

We purchase equipment and consumables worth 800 billion won in the first half of the year, and we also buy more than 1,600 commercial vehicles (50 billion won) ahead.

In the second half of the year, the operating cost of rented private facilities (BTL), such as National University dormitories and barracks facilities, is also paid in advance.

Government and public institution construction investments are also executed early in the first half of the year.

In addition, the government drastically eases the national contract system, such as veterinary contract requirements, to an unprecedented level this year.

We have doubled the limit for small-scale veterinary contracts and drastically expand the country market items that can be ordered without a separate bidding process.

The bidding notice period is reduced from 40 days to 5 days, and the statutory limits for payment of down payments and subcontracts are less than 5 days from the current 14-15 days.

To reduce the cost of companies participating in procurement, the upper limit of the advance payment has been increased from 70% to 80%, the bid contract deposit is reduced by 50% and the bid guarantee fee is exempted.

The government also delays the payment deadline for the total income tax and personal local income tax of 12.44 trillion won for all 7 million individuals by three months until the end of August to ease the economic burden associated with Corona 19.

We are also strengthening support for vulnerable lenders in overdue crises.

We decided to add the victims of Corona19 to the credit recovery support target of the Credit Recovery Committee to defer the payment of principal and reduce debts.

The company decided to make debt adjustments such as repayment suspension and long-term dividend repayment by purchasing a maximum of 2 trillion won worth of delinquent bonds such as small business owners who suffered damage to Corona19.

(Photo = Yonhap News)