Reasons for Proposal
As global warming gets worse, around the world are actively seeking greenhouse gas reduction policies to aim for “carbon neutrality,” which reduces greenhouse gas emissions to zero (0) by 2050. In Korea, the government and the National Assembly announced carbon neutrality in 2050 and are preparing effective greenhouse gas reduction policies.
From 2010 to 2018, however, total greenhouse gas emissions in Korea have increased from 656.32 million tons to 727.6 million tons. This is because there are clear limitations as, Korea’s effective environmental tax rate is half the average of the OECD and only some fossil fuels are taxed. To practically reduce greenhouse gas emissions, it is necessary to reorganize and reinforce the tax scheme in a way that fully covers those emitting carbon and imposes an appropriate tax rate on carbon emissions.
Therefore, it is important to establish a new carbon tax, an effective option to reduce and curb greenhouse gas emissions, minimize the burden for low-income groups and energy-vulnerable groups, increase the carbon tax rate flexibly in accordance with the country’s greenhouse gas reduction goals, and realize carbon neutrality by 2050.
In this regard, this Act aims to introduce carbon tax dividends, which evenly distribute the entire carbon tax revenue to Korean nationals, marriage immigrants, and foreigners with permanent residency, along with carbon tax, achieve carbon neutrality by 2050, realize tax fairness, and improve public welfare.
Details
A. Provide carbon tax dividends to Korean nationals, marriage immigrants, and foreigners with permanent residency in an effort to promote tax fairness and welfare (Article 1).
B. Ban transferring or providing as collateral the right to receive carbon tax dividends and impose no national or local tax on carbon tax dividends (Articles 3 and 4).
C. Define carbon tax dividends as 100 out of 100 of the carbon tax revenue divided by the number of recipients under the Carbon Tax Act and require the Minister of Strategy and Finance to determine the number of recipients by December 31 every year and pay such dividends in cash twice a year (Article 5).
D. Allow the Minister of Strategy and Finance or the Special Self-Governing City Mayor/Special Self-Governing Province Governor, and head of Si/Gun/Gu to request recipients to submit documentation required to identify the occurrence, change, and loss of the rights to receive carbon tax dividends (Article 8).
E. Allow the Minister of Strategy and Finance to suspend payments of carbon tax dividends to recipients who are sentenced to fines or more severe punishment, imprisoned in correctional facilities or forensic psychiatry facilities, or have stayed for 60 days or longer overseas (Article 10).
F. Require the Minister of Strategy and Finance to take back carbon tax dividends that have been paid falsely, unfairly or wrongly (Article 12).
G. Require the Minister of Strategy and Finance to operate and manage carbon tax dividend special accounting (Article 13).
H. Allow the Minister of Strategy and Finance to establish and operate a Carbon Tax Dividends Information System to efficiently process and manage data on carbon tax dividends and computerize recordkeeping and management work (Article 19).
Notes
This Act rests on the premise that the Carbon Tax Act (Bill no. 8732) and the Partial Amendment to the National Finance Act (Bill no. 8734), represented and proposed by National Assembly member Yong Hye-in, are passed. If the bills are not passed or are passed with modifications, this Act must be adjusted accordingly.
