If you spend 1.6 million won per year for public transportation expenses, the income deduction amount is 640,000 won → 960,000 won

The government is doubling the credit card tax deduction rate for public transportation use in the second half of the year to reduce the burden of transportation costs caused by rising oil prices.

We will also increase the number of users of the “Through Transportation Card,” which accumulates mileage according to the distance traveled by foot or bicycle.

On the 19th, the government announced the 'Price Stabilization Measures for Immediate People's Livelihoods' containing these contents at an emergency economy ministers meeting presided over by Choo Kyung-ho, Deputy Prime Minister and Minister of Strategy and Finance on the 19th.

First of all, the government has decided to raise the income deduction rate for public transportation card use from 40% to 80% in the second half of this year (July 1 to December 31).

Credit card income deduction is a system that provides deduction benefits for card usage (including cash and debit cards) exceeding 25% of total salary. .

For example, assuming that Mr. A, who receives a total salary of KRW 70 million, spends KRW 20 million on a credit card this year, Mr. A will pay more than 25% (KRW 17.5 million) of the 70 million won (KRW 2.5 million). You may be entitled to a deduction for

As such, assuming that the amount spent on public transportation out of credit card usage exceeding 25% of total salary is 800,000 won in the first half and 800,000 won in the second half, the public transport income deduction can go up from 640,000 won to 960,000 won under the existing system.

The scope of public transportation use includes subways, city and intercity buses, and trains.

The limit of income deduction is between 2 million and 3 million won depending on income, but in the case of public transportation, an additional limit of 1 million won is applied.

The government also decided to expand the number of users of the 'Thrift Transportation Card', which provides mileage in proportion to the distance traveled by foot or bicycle.

The thrifty transportation card is a transportation card that pays up to 20% of mileage in proportion to the distance traveled by the user on foot or bicycle, and provides an additional discount of about 10% by the card company.

Currently, the number of thrifty transportation card users is 390,000, and the goal is to increase this number to more than 450,000 by the end of this year.