Abstract
This study suggests the improvements and problem of taxation of differential special consumption tax by current golf course type. The problem of this tax related to the current golf course poses the problem of differential taxation according to the type of golf course. Therefore, this study suggests the way to convert the special consumption tax related to the entrance to the golf course into an additional tax (during the greening period) as a measure to improve discrimination taxation by golf course type. This study seeks tax-neutral tax structure through simulation analysis for taxable income and tax rates.
The results of the simulation to derive the appropriate tax rate for the conversion of the price based tax of this study are as follows.
First, in the case of abolishing the special consumption tax on the membership course, it is estimated that there is a loss of about 314.4 billion won per year including special consumption tax of 184.3 billion won. Second, the tax-neutral consumption tax rate that minimizes the loss of tax revenue is analyzed as follows. (A) If the tax base is admission fee(Green fee) : 3%, (B) If the tax base is the sum of “green flee + cart fee + caddy fee”, which is the consumption price of golf activity : 1.5%. At these tax rate, it is expected that the green fee will predicted to drop from KRW 186,727 to KRW 174,351 for the membership course, and for the public course it will rise from KRW 133,167 to KRW 140,198. Third, due to the price drop in the membership course, demand for 960,000 people is expected to increase, and demand for 1,140,000 people will decrease due to the price increase effect of the public course. Finally, the total tax revenue of special consumption tax is 186.7 billion won, which is similar to the estimated amount of tax revenue in 2019, but it is estimated that the tax revenue will increase from 2020 due to the increase in demand of the visitors. The results of this study provide policy implications for rationalizing the taxation system related to golf courses.
The results of the simulation to derive the appropriate tax rate for the conversion of the price based tax of this study are as follows.
First, in the case of abolishing the special consumption tax on the membership course, it is estimated that there is a loss of about 314.4 billion won per year including special consumption tax of 184.3 billion won. Second, the tax-neutral consumption tax rate that minimizes the loss of tax revenue is analyzed as follows. (A) If the tax base is admission fee(Green fee) : 3%, (B) If the tax base is the sum of “green flee + cart fee + caddy fee”, which is the consumption price of golf activity : 1.5%. At these tax rate, it is expected that the green fee will predicted to drop from KRW 186,727 to KRW 174,351 for the membership course, and for the public course it will rise from KRW 133,167 to KRW 140,198. Third, due to the price drop in the membership course, demand for 960,000 people is expected to increase, and demand for 1,140,000 people will decrease due to the price increase effect of the public course. Finally, the total tax revenue of special consumption tax is 186.7 billion won, which is similar to the estimated amount of tax revenue in 2019, but it is estimated that the tax revenue will increase from 2020 due to the increase in demand of the visitors. The results of this study provide policy implications for rationalizing the taxation system related to golf courses.
| Translated title of the contribution | Simulation Analysis of Conversion of Special Consumption Tax to Golf Course |
|---|---|
| Original language | Korean |
| Pages (from-to) | 169-200 |
| Number of pages | 32 |
| Journal | 조세연구 |
| Volume | 18 |
| Issue number | 4 |
| DOIs | |
| State | Published - 2018 |