SEOUL, Oct. 5 (Korea Bizwire) — Sales of high-priced items such as imported bags, jewelry and watches rose last year despite a drop in overall consumption brought on by the COVID-19 pandemic.
According to the data that Rep. Suh Byung-soo of the People Power Party received from the National Tax Service and the Korea Customs Service, the value of individual consumption tax levied on imported luxury bags stood at 25.6 billion won (US$21.5 million) last year, up 38.1 percent from a year ago, the largest growth among high-priced items.
When it comes to luxury bags and watches selling for more than 2 million won, an individual consumption tax equivalent to 20 percent of the unit price is levied.
Based on the consideration of a 10 percent value-added tax and the education tax that is equivalent to 30 percent of the individual consumption tax, aggregate sales of luxury bags were estimated at about 174.1 billion won.
The payment of individual consumption tax for luxury watches amounted to 79.2 billion won, up 6.1 percent, with total sales of luxury watches estimated at about 538.6 billion won.
In addition, tax revenues for imported jewelry and pearls, game machines for casinos, and cigarettes also rose by 19.5 percent, 19.4 percent and 29 percent, respectively.
Ashley Song (firstname.lastname@example.org)