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Controversy has arisen over where to spend the tax collected more than expected this year, but the government has decided to use the excess tax revenue to help small businesses, especially the self-employed who are not eligible for loss compensation.
Reporter Im Tae-woo reports.
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800,000 self-employed people whose sales have decreased due to a ban on gatherings or restrictions on business hours are receiving compensation from the government.
Additional support targets include wedding halls, travel, tourism, accommodation, and performance businesses who are not eligible for loss compensation even though sales have decreased due to restrictions on the number of people and facilities.
To them, a special loan with a 1% ultra-low interest rate up to a limit of KRW 20 million is provided to up to 100,000 people.
In addition, 8.9 trillion won will be invested in financial support projects, such as expanding the existing emergency loan target and limit for small businesses, and lowering the interest rate for tourism funders, which are targeted for accommodation and tourism businesses by up to 1%p.
For 800,000 companies that are eligible for loss compensation and 140,000 companies that are not eligible for loss compensation, up to 200,000 won in electricity bills and industrial accident insurance premiums are reduced for two months in December of this year and January of next year.
In addition, 100 billion won was allocated for sales recovery projects such as additional issuance of cultural and sports facilities.
12.7 trillion won will be invested in supporting small business owners and the underprivileged class, including about 30% of the excess tax revenue, or 5.3 trillion won, plus the existing budget.
The self-employed oppose that the low-interest loan support, not the cash equivalent, will only be used to revert the existing debt and will have little effect.
[Kim Jin-han/President of Accommodation: I have a feeling that you owe us financial support and that you guys do it on your own.
Due to the corona virus, everyone is in debt right now to the extent that no one is without debt...
.]
Long-term industry-specific policy support was also requested.
[Ryu Pil-seon / Head of Public Relations, Federation of Small Businesses: The biggest problem right now is rent and labor costs.
We needed measures to reduce the fixed costs that these people are burdened with.] To
stimulate consumption, the government also decided to extend the individual consumption tax cut for passenger cars, which was scheduled to end at the end of this year, by six months.
(Video editing: Park Jin-hoon, VJ: Park Hyun-woo)