DOI QR코드

DOI QR Code

A Study on the Change of the Korean Liquor Industry and the Imposition of Liquor Tax by Changes in Tax system

주세 체계 개편으로 인한 주류 산업의 변화와 주세 부과 방안에 관한 연구

  • 임건우 (단국대학교 환경자원경제학과) ;
  • 양성범 (단국대학교 환경자원경제학과)
  • Received : 2021.02.15
  • Accepted : 2021.05.25
  • Published : 2021.08.31

Abstract

On January 1, 2020, the liquor tax for beer and takju was reorganized from the ad valorem tax to the specific tax. The purpose of the reorganization of the liquor tax announced by the National Tax Service is to improve the quality of the liquor and to resolve unreasonable discrimination between domestic and imported liquor. However, it is necessary to determine whether the National Tax Service's standard for levying the liquor tax is appropriate for the purpose. In this study, the change in the liquor industry is estimated due to the reorganization of the liquor tax using Hicks net price elasticity. In addition, the specific tax for each of the liquors and the alcohol content derived from the social cost minimization model is compared. The main findings are as follows. First, when the liquor tax of beer and takju is converted to the specific tax, social costs increase, and social welfare decrease. Second, if all the liquors are converted to the specific tax, social costs decrease. Third, when comparing specific tax by each of the liquors and the alcohol content according to the social cost minimization model, The specific tax by alcohol content can be considered more appropriate in terms of social cost and the stakeholders in the liquor industry.

Keywords

References

  1. Baek, N. J. 2014. Three essays on alcohol demand. Doctor thesis. Korea University. Seoul. Korea.
  2. Chung, P. K. 2006. Tax Effects on Demand for Alcoholic Drinks and Revenue in Korea. The Korean Journal of Economics. 13(2): 199-213.
  3. Jung. I. 2019. The government "Annoucements to reform the state tax law, postpone it due to differences in the liquor industry". SBS Biz. https://biz.sbs.co.kr/article/10000940549?division=NAVER
  4. Kim, T. K. and C. K. Kwock. 2001. Structural Change in the Demand for Alcoholic Beverages. The Korean Journal of Agricultural Economics. 42(1): 117-132.
  5. Lee, J. Q. and E. J. Song. 2017. Reform of the Liquor Tax System - Focusing on the Possibility of Conversion to Specific Taxation -. Journal of Taxation and Accounting. 18(3): 183-216. https://doi.org/10.35850/KJTA.18.3.07
  6. Myung. W. 2021. There is no bad soju in the world. Weekly Donga. https://weekly.donga.com/3/all/11/2537398/1
  7. Yang, S. B. 2012. Strategy of the Korean liquor industry on the market. Doctor thesis. Korea University. Seoul. Korea.
  8. Yang, S. R., C. K. Kwock, and J. Y. Moon. 2000. Soju-Whisky Liquor Tax Dispute and the Impacts of Tax Rate Adustment. The Korean Journal of Economic Studies. 48(1): 195-221.