<Anchor> The government,

which recently put the brakes on soju price increases, plans to curb excessive price increases by trimming taxes on beer and table liquor.

The idea is to change the way taxes go up when prices rise, and reporter Joe Ki-ho covered the details.

<Gija>
This is a restaurant in Yeongdeungpo,
Seoul.

I have maintained the beer price of 4,5 won since 100 years ago, but I am worried about the delivery price that keeps rising.

[Oh Myung-keun/Restaurant Owner: I was thinking about raising it if the price (of mac juice) would go up by 100 won, but my husband and I are like, oh, how can we raise 1,000 won when it goes up by 100 won, it's not possible.]

Currently, beer and rice wine prices are subject to an "inflation linkage system" that raises taxes by the amount of inflation.

If the price rises by 70 won, it is between 130~70% of the increased price, that is, within 130 won and 30 won.

As a result, beer will be taxed 5.1 won more per liter from next month, which is a factor in the increase in shipments for manufacturers.

As the shipping price rises, the retail sales price rises even more, and for restaurants, operating costs are added to this.

In fact, last month, grocery store beer was up 5.9 percent from a year ago, compared to a 10.5 percent increase in restaurants.

Higher shipment prices drive up consumer prices, which in turn increases prices-linked taxes, which in turn stimulates shipment prices.

The government considers that there are unreasonable aspects, and plans to announce it around July, considering the abolition of the inflation system and raising state taxes irregularly.

[Choo Kyung-ho/Deputy Prime Minister for Economic Affairs: If the price of beer was 7,15 won, for example, with the factor of tax increase of 1 won, would (the manufacturer) set it at 1,15 won?

However, unlike shochu, where taxes go up every time a company raises prices, it is pointed out that if only beer and table liquor are taxed, equity decreases.

Also, every time the tax rate is set, there may be controversy.