VAT frustrates pet owners
By Kang Seung-woo The government’s plan to impose a tax on medical treatment for pets faces a great deal of opposition, as veterinarians as well as owners are compiling a petition to reverse it. The Ministry of Strategy and Finance announced in August that a 10-percent value added tax (VAT) will be levied on such medical treatments from July 2011. The introduction of the new tax is being pushed as part of efforts to increase tax revenue and plug shortfalls expected for next year. Last year the government tried to pass the bill only to drop it after meeting intense resistance from those affected by the issue. According to ministry officials, vets and animal hospitals have so far received tax benefits, but the new tax is being introduced based on the global standard that only medical treatment for humans is exempted from VAT. However, those who oppose it argue that few countries currently impose VAT on medical treatment for pets. “It is quite out of the question. Among what we call developed economies, a few countries in the European Union and Japan impose VAT and
