LKP’s next bill is to lower fuel taxes

The main opposition Liberty Korea Party (LKP) plans to submit another contentious bill next week — this time to cut fuel taxes — LKP lawmakers said Friday.

Earlier this week, the conservative party submitted a bill to slash cigarette taxes.

Liberal parties are strongly denouncing the moves, saying the LKP is taking populist steps to hamper the government’s tax-hike plan.

“We will push for a tax reduction over tobacco and fuel to ease the tax burden of the common people,” LKP Chairman Hong Joon-pyo said on Facebook, Friday. This is in line with his campaign promise to halve the fuel tax for owners of cars with an engine capacity of less than 2,000 cc.

Rep. Yoon Han-hong, who is drawing up the fuel tax-cut bill, said the bill will be submitted next week. According to the LKP, 76.4 percent of cars would be subject to the measure, saving 7.2 trillion won ($6.24 billion) — 400 won a liter of gasoline.

The LKP claimed people could save 5 trillion won through its bill to slash cigarette taxes. On Wednesday, the party tabled the bill to lower the average price per pack to 2,500 won from 4,500 won.

The bill came under fire for taking smokers “hostage” for the party’s political interests. Further, pundits expressed concern that a cigarette price cut may prompt more young people to smoke.

The move is generally viewed as a political offensive against President Moon Jae-in’s attempt to expand the government’s role in creating jobs in the public sector, which requires more tax revenue. Moon and the ruling Democratic Party of Korea (DPK) are mapping out a new tax system to put a bigger burden on the “super rich” — individuals earning over 300 million won a year and companies that have more than 200 billion won in annual revenue.

Unlike the disputed tobacco tax cut that is relevant to public health, the oil tax reduction could get wider support, Myongji University professor Shin Yul said. “The issue is more persuasive than the cigarette tax cut,” Shin said.

“However, the conservatives are trapped in the lingering public anger that has been ignited by ex-President Park Geun-hye’s political blunders. The fuel tax reduction would be inadequate to deter the popular President’s bid.”

President Moon’s popularity is growing, even if the tax hike is a traditionally divisive issue that attracts enormous resistance from taxpayers. According to Gallup Korea’s survey issued Friday, 77 percent of respon- dents, up 3 percentage points from previous week, approve of the liberal leader. On the other hand, the LKP’s support stood at 10 percent, compared with the ruling DPK’s 50 percent.

Practically, the LKP’s tax reduction move is unlikely to work, veteran politician Park Jie-won of the People’s Party said Thursday. “Around 178 trillion won is needed to achieve Moon’s policy roadmap,” Park said. “The ruling camp’s bid to impose higher taxes on the super riches can ensure only 3.8 trillion won, thus they would be difficult to accept the LKP’s proposals.”

The minor conservative Bareun Party Chairwoman Lee Hye-hoon has echoed the point. “Moon should straightforwardly reveal how much is required to provide welfare for people. There’re no detailed figures in the tax hike plan,” she said Monday.