South Korea’s opposition People Power Party lawmakers have prepared a new challenge to the proposed crypto tax bill as they are seeking a one-year delay in the enactment of the law.
According to The Korea Herald, opposition MPs are pushing for a one-year delay in the country’s implementation of crypto taxes.
South Korea’s crypto tax scheme, which will impose a 20% duty on cryptocurrency gains above 2.5 million Korean won ($2,100), will take effect in 2022, as previously reported by Cointelegraph.
Aside from the one-year delay, MPs are also pressing for a multi-tiered tax on cryptocurrency, similar to the Financial Investment Income Tax regime planned to take effect in 2023.
Instead of the government’s 20 percent flat rate on profits over $2,100, the legislators propose a 20 percent flat rate on gains between 50 and 300 million won ($42,000 to $251,000) and a 25 percent flat tax on profits over 300 million won.
Representative Cho Myoung-hee, speaking on the need to lessen the burden on crypto investors, said that a tax regime for cryptocurrencies should be aligned with the country’s financial investment income tax.
The People Power Party’s challenge to the crypto tax bill follows a similar action by Democratic Party MPs in September.
However, an agreement reached between MPs and the country’s finance minister is said to have put an end to any efforts to postpone the crypto tax law’s implementation.
South Korea’s crypto tax policy is one of several stringent government laws adopted in recent years that could affect the country’s cryptocurrency economy in the future.
The compulsory licensing requirement for South Korean crypto exchanges went into effect in September, forcing some smaller companies to shut down.