Non-member golf course ‘individual consumption tax’ imposed… half anticipation, half fear

The Ministry of Strategy and Finance announced on the 18th the ‘Amendment to the Enforcement Decree following the tax reform’. According to the amendment, non-members must pay taxes, such as individual consumption tax, which have been imposed only on membership golf courses.

This is to lower the green fee, which has soared to the ceiling due to the new coronavirus infection (Corona 19) special. Last year, the government divided the golf course classification system from the existing membership system and public system into membership system, non-member system, and public system. It was decided to grant tax cuts only to mass-type vehicles that comply with the upper limit on fares.

Previously, the Ministry of Culture, Sports and Tourism announced the upper limit on the public green fee. Last October, 2.8% of the inflation rate was reflected in the average green fee for non-members in the metropolitan area. Here, the tax difference of 34,000 won between the membership system and the public type was subtracted. The green fee calculated in this way is 188,000 won on weekdays and 247,000 won on weekends.

If you exceed the upper limit of the public green fee, you will be classified as a non-member and have to pay taxes. According to the amendment announced on the day, the tax imposed on non-members is 21,120 won. Individual consumption tax of 12,000 won includes education tax, special agricultural tax of 7,200 won, and value-added tax of 1,920 won.

The government expects non-member golf courses to lower green fees in order to continue receiving tax cuts. According to the Korea Leisure Industry Research Institute, there are 98 non-members that exceed the public green fee standard. It is expected that 62 of them will switch to a public system that benefits from tax cuts while lowering their green fees by 20,000 to 30,000 won.

In addition, it is predicted that it will be difficult to increase the green fee additionally as the demand for golf decreases due to the domestic economic recession and the calming golf boom. If this happens, golfers can be prepared to play a round of golf at a slightly cheaper price than now.

Conversely, some popular golf courses in the metropolitan area are not easy to reserve, so you can give up tax cuts and maintain high green fees. In fact, after the reorganization of the golf course classification system, some golf courses in Yeongcheon, Gyeongbuk, and Seongnam and Pocheon, Gyeonggi, are known to have raised green fees.

In addition, there are concerns about ‘trick sales’, such as raising other incidental costs while setting green fees according to public standards. It is a way to cover taxes by raising food and beverage and cart fees instead of green fees. 온라인바카라

Some argue that the government’s control of green fees, which are determined by demand, location, management status, and service level, is an anachronistic regulation. An official of a golf course said, “The public golf course covers the cost of setting up more than 100 billion won. The tax reduction benefit is one of the reasons to jump into the golf course business.” he asked.

At the same time, the official said, “In the short term, the green fee may be lowered. However, in the long term, it may have an adverse effect on the popularization of golf.”

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