부가가치세 면세제도에 대한 조세지원 방식의 적정성 측면에서의 평가

This study investigates what criteria should be adopted in the political choice between tax expenditures in the way of value-added tax exemption and budget expenditures when providing economic benefits for general consumption. Specific criteria which can be considered are the characteristics of beneficiaries, the methods of economic benefits, and possible problems of those benefits. First, in view of the characteristics of beneficiaries, budget expenditures are more preferable for beneficiaries whose tax burdens are not heavy or whose economic conditions need to be improved. Second, in view of the methods of economic benefits, budget expenditures are more preferable when graded economic benefits are provided or the price-elasticity of related goods and services are relatively small. Next, in view of possible problems, tax expenditures are more preferable in that both administration and compliance costs are small, and the probability of arbitrary decision and corruption is low. The case of agricultural use oil is the example where contemporary value-added tax exemption is misapplied, while the case of cosmetic surgery for foreigners is the example of opposite feature.