People Power Party lawmaker Choi Eun-seok (Daegu Dong-gu·Gunwi-gun Gap) proposed a bill on the 25th to extend the expiration date of the earned income tax credit system for wage earners and to raise the tax credit rate for traditional market usage.
Under current law, wage earners can receive a tax credit for amounts spent through credit cards, debit cards, and cash receipts up to a certain percentage, and a higher credit rate applies to some items, such as traditional markets and public transportation. Currently, a 40% tax credit rate applies to amounts used in traditional markets.
This amendment contains provisions to extend the expiration date of the earned income tax credit for spending on credit cards and the like from the current December 31, 2025, to December 31, 2030, for five years, and to increase the tax credit rate for traditional market credit card usage to 50%.
The legislative background is that a more aggressive consumption promotion plan is needed to support traditional market merchants who are struggling due to rising prices and a decline in consumer sentiment.
Lawmaker Choi stated, "Traditional markets are more than just trading spaces; they are the roots of local communities," adding, "I hope this amendment will revitalize regional traditional markets and help alleviate the economic difficulties faced by small businesses."
This amendment is a promise made to local voters during the 22nd general election by Choi and aligns with the policy pledges made by Kim Moon-soo, a candidate of the People Power Party, during the recent 21st presidential election.
Lawmaker Choi said, "I hope this amendment, as an effective measure to revitalize the livelihoods of ordinary people and the local economy, will be passed by the National Assembly soon."