Tax Code Can"t Discriminate Between Whiskey and Soju

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Tax Code Can"t Discriminate Between Whiskey and Soju

A bottle of of soju is expected to rise in price by 300 won in June 2000 at the latest. The Ministry of Finance and Economy(MOFE) on January 18 announced that it will change the current tax code on alcohol because the World Trade Organization(WTO) ruled that Korea's alcohol tax violates WTO agreements.
The government is considering two different ways to abide by the WTO's ruling. It will either raise the tax rate on soju from the current 38.5 percent to 130 percent or make equal rates for both soju and whiskey somewhere between 60 to 80 percent.
If the government decides to raise the tax on soju, the price will rise from 700 won to 1,000 won.
A source at MOFE said, 'We have to begin negotiations with the EU and the U.S. on the tax within a month.'
The EU and U.S. jointly filed a petition with the WTO last July, arguing that the Korean tax code discriminates imported alcohol products.
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