According to a new survey conducted by the Korea Social Opinion Research Institute, most South Koreans support the upcoming digital currency taxation law (KSOI). According to the survey, 55 percent of respondents support the regulations, with only one-third opposing them.
South Korea has long sought to establish a framework for digital currency taxation to generate additional revenue for the government from the nascent industry. The law, which imposes a 20% tax on digital currency gains exceeding $2,300, is set to go into effect in January 2022, though there are ongoing efforts to delay it until 2023.
While members of the National Assembly try to delay it, the majority of Koreans support the measures. The KSOI found a survey that polled 1,004 adults.
According to Hankook Ilbo, 55.3 percent of respondents said, “we should pay a tax on digital currencies.” However, the tax law was opposed by 33% of those polled, with 11.5 percent saying they didn’t know.
The majority of those who opposed the tax were younger people.
Whether they support or oppose the new law, Koreans may have to wait another year to see its effects if the Democratic Party has its way in parliament. The party and its allies have 180 seats in the 300-member National Assembly. As a result, it is likely to have its way in any motion it proposes.
The party has asked the Finance Ministry to delay the implementation of tax laws until 2023. It claims that by doing so, market participants will have enough time to prepare for the changes.
Kim Byung-ook, a party member, recently suggested to the Finance Minister that the new digital currency tax laws be pushed back to 2023 to coincide with the upcoming stock market capital gains tax, calling this “the reasonable thing to do.”
Finance Minister Hong Nam-ki, on the other hand, is adamant that the tax laws will go into effect on January 1, 2022, as planned.
He told parliament,
“The foundation has now been laid, and based on that, we will be taxed starting next year.”