우리나라 附加價値稅制度의 施行效果 分析 = Analysis on Effects of the Implementation of Korean Value Added Tax

다국어 초록 (Multilingual Abstract)

In this Article, the author attempts to analyze the reasons behind the introduction-of Korean VAT and the effects of its implementation, as well as outlining the major characteristics of the tax.
The introduction of VAT in Korea in 1976, effective July 1st 1977, complemented by a special excise tax, resulted in a structural change in the Korean indirect tax system as the new taxes replaced business, textile products, petroleum products, gas and electricity, travel, admission, and entertainment and food taxes.
The reasons for the introduction of Value Added Tax in Korea can be summarized as fellows :
1) The purpose behind the origins and evolution of the old tax system was mainly that of raising tax on the basis of sales. Different commodities came under the scope of excise and sales taxes at different times from revenue perspective. Over the years this had resulted in a complex system of taxable objects and rates, which lacked a consistent theoretical base, and which functioned insufficiently as a general consumption tax. A need had thus arisen to modernize and simplify the indirect tax system.
2) As the business tax was of the cascade type with cumulative taxation, it led to distortions in the allocation of resources. The introduction of VAT was strongly recommended to promote exports and investment, but otherwise maintain neutrality in transactions.
3) It was believed that VAT, if introduced, would contribute to revealing the volume of business transactions and to reducing tax evasion through its serif-control function, with the existance of invoices as evidence for taxation.
The form of VAT introduced in Korea is basically similar to that of EEC countries. Korean VAT is single rate (basically fixed at 13 per cent but with provision that it can be flexibly adjusted by up to 3 percentage points in either direction. Currently its rate at per cent) and is of the consumption type, using the invoice method in the assessment of the tax amount (tax payable at each stage is tax on the total value of output minus tax paid on inputs).
Investment is of course excluded from taxation. As for experts, zero-rating applies be that the full amount of tax paid on inputs can be completely refunded. Basic life necessities (mainly non-processed agricultural products) culture related foods and certian services, like national welfare services and personal services of an independent character, are exempt from tax. Such exemptions are of greater scope than existed under the old business tax. The exemption of basic life necessities serves a dual purpose : it mitigates the tax burden on the lower class and avoids the administrative difficulty of taxation on the farming community.
For the convenience of small business taxpayers whose annual sales amount to less than 24 million won (in the case of a proxy or a agent, lese than 6 million won), the regular VAT does not apply but a special taxation scheme, like business tax, operates involving a tax of 2 percent on their sales amount (3 per cent in the case of a proxy, agent or intermediary). The scheme covered 78.3 per cent of total taxpayers as of 1981.
Analysis of the effects of introducing VAT in Korea was attempted in relation to the impact on tax revenues, the allocation of the tax burden the price level, experts and investment, and its efficiency in establishing taxation on the basis of the evidence rule.
In respect of tax revenue, there were no significant changes before and after the introduction of VAT. Internal tax revenue as a ratio to GNP was about 9 per cent to 10 per cent in both 1977 and 1979. The tax burden ratio of "the business tax group" and "VAT group" to GNP was respectively about 5.2 per cent in 1977 and 5.33 per cent in 1979.
As for the allocation of the tax burden, if the indirect tax burden as between income classes for the first quarter of 1977 and firsts quarter of 1978 is compared, the tax burden of those whose monthly income was leas than 50 thousand won increased from 5.9 per cent to 6.76 per cent of total income while that of those whose monthly income is more than 400 thousand won, decreased from 4.86 per cent to 4.40 per cent. So the regressiveness of the indirect tax system was furthr aggravated by the introduction of VAT and there remains a need for tax policy to mitigate this effect.
As for the impact on the price levee, in the two mouths after the introduction of VAT, the whole stole price level increases 3.4 per cent, of which VAT's implementation is considered to have contributed 0.6 per cent points. This low increase wart mainly because of government controls on the price level. The retail price changes were also compared for 6 month intervals. During the 6 month and 12 month periods before the introduction of VAT, the price index rose 6.7 per cent and 10.1 per cent respectively while the comparable figures for the 6 month and 12 month periods after, were 3.9 per cent and 14.0 per cent,
Considering increases in the price level at the time of VAT's introduction were mainly affected by movements in food prices (in 1978 the retail price level robe 10.3 per cent, food prices by 12.0 per cent and the, non-food price level by 8.7 per cent), it seems that there was no significant direct causal relationship between VAT and inflation.
In relation to exports, tax exemption on experts increased somewhat from 50.97 won per dollar in the first half of 1977 to 53.38 won per dollar in the first half of 1978. As for investment, considering refunded tax in the second half of 1977 amounted to 18,336 million won, it is concluded that VAT played a significant role in promoting investment. However, any effects on the structure of industry and distribution would be apparent in the long run and so cannot be discussed at this stage.
With regard to taxation on the basis of evidence, achievement in terms of issuance and receipt of tax invoices and promotion of sound bookkeeping were not as good as had been expected. Especially as the self control function of VAT through the invoicing system could also be used to monitor other sources of tax e.g. traders' income, and is closely related with tax burden of other taxes, it has not functioned as well as hoped for. Cross-checking of tax invoices should be reviewed in terms of the compliance cost to taxapyers. The author concludes that assessment of the merits of VAT's introduction can be made from a variety of perspectives.
Although not all the expected results were successfully attained and there was some problems in the timing of iris introduction, its implementation should be regarded as an important step in the modernization of the tax system, especially in view of the shortfalls of the old mechanism while successive adjustments to the current scheme are needed for its complete development us an efficient method of raising indirect taxes.

목차 (Table of Contents)

• Ⅰ.問題提起
• Ⅱ.附加價値稅制의 導入背景과 槪要
• 1.加價値稅制 導人의 背景
• 2.附加價値稅制의 槪要
• Ⅲ.附加價値稅制의 施行效果
• 1.稅收人
• 2.負擔配分
• 3.經濟的 效果
• 4.根據課稅
• Ⅳ.結論