By Lee Jin-woo
Staff Reporter
With three days to go before the resumption of the regular National Assembly session, the largest opposition Grand National Party (GNP) Monday declared war on the government’s plan to increase various taxes.
The Ministry of Finance and Economy said last Friday that prices of soju, the most popular distilled liquor in Korea, will increase by 100 won to 200 won from the beginning of next year. The prices of liquefied natural gas (LNG), which is widely used for heating houses, will soar 60 won per kilogram from the current 40 won, a 50 percent increase, according to the plan.
In addition, the government will reduce various tax exemptions including lowering the credit card-related income tax deduction. It will cut back tax exemptions on interest income from various bank deposit products including long-term housing savings.
The GNP denounced the ``2005 tax reform plan” for making the public the scapegoat for failed economic policies.
``We will fight against the absurd tax hikes. It puts an unbearable financial burden on workers and less privileged groups,’’ said Rep. Kang Jae-sup, floor leader of the GNP. ``The government should reconsider the dire financial hardships of the public before announcing plans for such tax hikes.’’
Rep. Kang added the GNP will expose the irresponsible budget spending of government officials and urge the government to lower its heavy taxation on oil.
Rep. Maeng Hyung-kyu, chief policymaker of the party, expressed his concern that the government’s plan will totally ruin the livelihood of the poor and bring down the middle class of society.
Deputy Prime Minister and Finance-Economy Minister Han Duck-soo, however, has repeated the government’s strong determination not to lower oil taxes as the nation’s total tax revenue relies heavily on oil-related taxes, even as such heavy taxes force the public to reduce oil consumption.
The National Assembly is to convene a three-month regular session on Thursday to deal with next year’s budget and a number of pending issues including the scrapping of the National Security law.
Abolishing the decades-old anti-communist law is one of four reform measures the governing Uri Party has been working to legislate since last year’s regular parliamentary session. The Uri party has been unable to act on the legislation throughout three extraordinary sessions of the National Assembly this year due to strong objections from the GNP.
As the regular session comes amid a number of controversies such as the recent scandal over alleged illegal wiretapping by the nation’s spy agency, often called ``X-File audio tape scandal,’’ the Assembly is expected to be full of heated debates.
The Assembly session will begin with committee meetings that will continue through Sept. 21, followed by a 20-day inspection of government offices after the Chusok holiday on Sept. 17-19. A plenary session will convene on Oct. 19 to act on bills approved by committees until then, followed by a five-day interpellation session with a one-day recess on Oct. 26 for the by-elections.
The Assembly session is scheduled to end on Dec. 9 after a two-day plenary session, but the parties may agree to extend it until the end of the year.
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