South Korea’s opposition lawmakers party, the People Power Party, reportedly wants to delay the country’s controversial crypto taxation law, which imposes a 20% levy to all crypto-based profits amounting to over 2.5 million Korean won, by another year.
As per the report published by The Korean Herald, the opposition lawmakers also intend to change the impending taxation law – pushing for a more-tiered crypto tax levy framework that better follows the Financial Investment Income Tax command coming this 2023. To be more specific, they are proposing a 20% levy on profits between 50 million and 300 million won and 25% on gains exceeding such instead of the 20% flat rate as mentioned above.
People Power Party member, Cho Myung-hee, states that it feels inappropriate for the government to impose taxes considering that the legal definition of cryptocurrencies within the country is still very vague. He added that the opposition’s advancements considering the tax law set to be implemented next year aim to ease the heavy burden the original proposition puts on crypto investors and the space as a whole.
While the opposition makes excellent points, the country’s Deputy Prime Minister and Finance Minister Hong Nam-Ki believe that the legislation is good and is already primed for implementation as early as this January 1st, 2022. According to his statement last week, any further delays to the upcoming crypto tax law would only lead to further government trust loss.