By Lee Hyo-sik
A growing number of lawmakers from both ruling and opposition political parties are opposing a government plan to impose 10 percent value added tax (VAT) on medical treatment for pets from July in an apparent bid to win support from an estimated 10 million pet owners.
During a parliamentary interpellation session, Tuesday, Rep. Jeong Tae-keun of the governing Grand National Party urged the government to scrap imposing VAT on such treatment.
``Charging 10 percent VAT on medical care of pets is drawing a great deal of opposition from veterinarians and owners. The government views raising pets as equal to either receiving cosmetic surgery or purchasing luxury items. But this view is biased,’’ Jeong said.
The new tax, introduced by the Ministry of Strategy and Finance as part of efforts to increase tax revenue, was approved by the Cabinet in December. It is scheduled to go into effect on July 1.
The ministry said vets and animal hospitals have so far received tax benefits, adding the new tax was introduced based on the global standard that only medical treatment for humans is exempted from VAT.
However, Jeong said the new VAT will only boost revenue by 13 billion won ($10 million) each year, stressing the government is trying to raise indirect taxes from pet owners, most of whom are ordinary people.
``Having to pay VAT will trigger serious social problems ― the misuse of drugs on pets and more abandoned animals. It will be inevitable for animal hospitals to hike medical bills due to the additional tax. The soaring bills will spur an increase in the already large number of abandoned pets, usually dogs,’’ the lawmaker said.
He estimated about 4 million households, or 10 million Koreans, raise cats, dogs or other pets, demanding the government withdraw the new tax to reduce their financial burden and maintain social well-being.
Rep. Oh Jae-sae of the main opposition Democratic Party also blasted the new tax during the session, insisting it will only increase the financial burden on middle- and low-income families.
Rep. Lee Nak-yon of DP and 22 other lawmakers have already initiated a revised bill to exempt the medical costs of treating pets from VAT.