The ‘designated system’ in which the National Tax Service appointed and announced liquor cap manufacturers will change to a ‘registration system’ where manufacturers register directly. Whiskey, brandy, and distilled soju will be added as small-scale liquor manufacturing licenses that can be established with low capital. It is expected that the ease of market entry for new companies and the diversification of production liquor will contribute to the expansion of K-spirits exports.
The National Tax Service announced on the 30th that it will transition the method of registering and announcing tax cap manufacturers, known as the 'designated system', to a 'registration system' starting July 1, allowing entry into the market as long as certain facility requirements are met.
Until now, the National Tax Service has managed by designating liquor cap producers to secure liquor tax revenues. This regulation was intended to accurately assess production volume based on the number of caps and to precisely collect tax revenues.
While management was easy, a side effect occurred where various designs of caps desired by liquor companies were not produced. This was because large companies refused to produce caps with various designs requested by businesses, citing production efficiency.
In response, the National Tax Service has changed the sales permit method for cap manufacturers to a registration system, allowing it to reflect market demand. The verification of liquor tax revenue will be conducted by the National Tax Service collecting and verifying individual companies' data. A spokesperson from the National Tax Service noted, 'Although administrative burdens will increase, this is a part of active administration to enhance the competitiveness of K-spirits by relaxing regulations.'
The National Tax Service also decided to add whiskey, brandy, and distilled soju to the categories of small-scale liquor manufacturing licenses, which were previously limited to Korean rice wine, medicinal wine, clear wine, beer, and fruit wine. This was to create an environment where various companies could enter the market and establish a free competitive system.
A plan to reduce production and management expenses for liquor manufacturers reflecting the reality of liquor consumption culture has also been introduced. Firstly, the obligation to label as 'household' for soju and beer sold primarily in paper packs and PET bottles, which are mostly consumed at home, has been abolished.
The obligation to attach RFID tags, which applies to whiskey and others, has also been improved so that it only applies to whiskey with an alcohol content of 17 degrees or higher. Currently, the system mandates RFID tagging even for low-alcohol beverages like highballs that use whiskey. While their production costs and selling prices are lower than regular whiskey, the requirement for RFID attachment has led to increased production expenses.
A spokesperson from the National Tax Service said, 'We will continue to actively support the revitalization of the domestic liquor market and the expansion of our country's liquor abroad through ongoing communication with the field and consultations with related agencies.'