Additional income deduction if the car opening tax is reduced by 30% and consumption is increased...Will it work?

20% additional income deduction if consumption increases by more than 5% in the first half of the year
Double the income deduction rate for credit card amount of small business owners, up to 30% off digital Onnuri gift certificates during the peak season of the Lunar New Year's holiday.

[Anchor]
The government has decided to melt consumer sentiment that has been frozen in the direction of economic policy this year.

In the first half of the year, we came up with measures to cut taxes when buying cars and provide tax benefits even if consumption is increased compared to last year.

It is questionable whether it will work on the high exchange rate coupled with internal and external uncertainties.

Lee Seung-eun organized it.

[Reporter]
Consumer sentiment is frozen.

The problem is that I can't see.

[Small business owner: It's not stable and the people are all crushed. I don't open my wallet. People up there should do well...]


In the first half of the year, the government will push for an additional 20% income deduction if consumption is increased by more than 5% compared to last year.

In particular, for the amount of credit cards used by small businesses with sales of 104 million won or less, the income deduction rate has been doubled to 30% this year alone.

From the 10th, the peak Lunar New Year season, you will receive up to 30% discounts on digital Onnuri gift certificates for a month.

We have also prepared measures to increase consumption of durable goods.

In the first half of the year, the individual consumption tax for automobiles will be lowered by 30% (5→3.5%, limit of 1 million won), and the opening tax reduction will be promoted again when replacing old cars.

Electric cars are also given more subsidies if companies discount.

For example, if you buy a 44 million won electric car, the discount effect will be 5.2 million won, an increase of 400,000 won from last year.

We will also expand refund support for purchasing high-efficiency home appliances for the vulnerable.

Domestic tourism is the main pillar of consumption.

It will distribute 1 million new accommodation coupons (up to 30,000 won) in the non-metropolitan area, and more than double the number of support for SME workers' vacation support projects. (150,000)

In order to strengthen income, we have also decided to come up with incentives for companies raising wages.

Even if the couple lives separately, monthly rent tax credits are allowed.

[Kim Jae-hoon / Director of Economic Policy Bureau, Ministry of Strategy and Finance: There are simply economic factors when it comes to consumption, but the population reduction effect is the greatest. We will continue to pursue these tasks, such as reversing the trend of low birth rate and responding to aging.

But the political turmoil, the high exchange rate coupled with Trump's inauguration, is a problem.

Surging exchange rates directly affect import prices, such as oil, and are reflected in producer prices and consumer prices with a time lag of one to three months.

I'm YTN's Lee Seung Eun.

Reporter for shooting
: Jeong Chul-woo
Video editing: Lee Jung-wook
Design: Im Saetbyul