A government plan to levy a 10-percent value-added tax (VAT) on medical treatment for dogs, cats and other pets is stirring a backlash not only from veterinarians but also from pet owners and animal rights activists. Even some lawmakers of both governing and opposition parties are moving to block the taxation.
The question is whether the move is proper in both legal and financial terms. It appears that there is no legal problem with the plan. The Lee Myung-bak administration changed tax regulations last December to introduce the so-called pet tax next month.
It seems to be a good idea to find more taxable sources in order to increase state revenue. Considering the Lee administration’s income and corporate tax cuts, there is a growing need to make up for losses arising from the lower tax rates. Besides, large-scale public works such as the four-river refurbishment projects have put more pressure on the treasury.
Under the revised tax code, VAT will also be imposed on cosmetic surgery and dance tutoring. Those attending driving school classes will be obliged to pay a 10-percent tax from July 1 next year. The new tax is intended to replenish the state coffers. But it will inevitably weigh on taxpayers.
The pet tax is also feared to increase financial burdens on people. According to official statistics, there are 4 million households with pets, mostly dogs. About 36 percent of them belong to the lower class with their monthly family income amounting to 2 million won ($1,850) or less.
Opponents fear that higher medical costs due to the tax may lead to an increase in the number of abandoned pets. In Seoul alone, the number of strays was estimated at 18,624 last year, up from 15,373 in 2007.
To better protect animal rights as well as ease burdens for pet lovers, the government had better scrap the tax plan. Policymakers should not attempt to pinch money out of the pockets of the people under the name of pet tax.