The South Korean government has just rejected an attempt by parliamentarians to postpone the capital gains tax related to crypto transactions for a year, CoinDesk Korea reports.
The country's finance minister, Hong Nam-ki, and key members of the Democratic Party's National Assembly have agreed that the taxes will begin to be collected as planned.
Earlier, the Ministry of Economy and Finance determined the new requirements will take effect next January 1, 2022. The tax will be 20% on earnings exceeding 2.5 million Korean wons (about $2,105).
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The Democratic Party, which has a small majority in parliament, has attempted to pass legislation aimed at delaying the tax for a year due to a lack of infrastructure.
The finance minister has repeatedly stated the tax rules will go into effect in accordance with previous decisions. Hong Nam-ki is one of the country's most popular politicians, having previously held the post of prime minister and other senior positions.
At a meeting with the leadership of the parliamentary faction, the minister has defended his position. As an argument against postponement, he has recalled the growth of the crypto market. According to him, where there is income, there are taxes.