골프장 산업의 구조와 경쟁 행태에 미치는 조세정책의 영향에 관한 연구

Abstract

In general, complex regulation produces a very high regulatory compliance cost. Likewise, a complex tax system also produces tax compliance cost, so it increases the tax burden not only on owners of the golf course but also on golfers too, which is expected, in the end, to work as a serious hurdle to development of golf industry. With around 4 million golfers, golf has become popular, and a excess demand for golf of the past has been eased due to the rapid growth of golf course during last 6 to 7 years. Nowadays, even excess supply of golf course has been discussed. However, price competition has not been fully carried out yet. It is confirmed and discussed in this paper that tax burdens on golf courses and golfers are too high in the viewpoint of tax fairness, or tax equity, and high tax incidence is resulted in golf course since golfer's price elasticity of demand for golf is much higher than price elasticity of supply for golf in the short-run. Under this situation, as long as substitute for domestic golf course exists such as foreign golf course, the price difference between domestic and foreign golf courses can lead (to deterioration not only in domestic golf courses but also in tourism balance, too. We confirm that reconsideration on the tax system on golf industry is strongly needed. Analysis on the impact of the temporary tax break for the golf courses in the provincial areas for the last two years shows that golfers responded very sensitively to price reduction. This finding tells us that the government should consider this high price elasticity of demand for golf when it designs policy direction to minimize the market distortion in the golf industry Present punitive high taxation policy on golf industry, carried out as regulatory policy, and confirmed by temporary tax break on price-sensitive golfers, is expected to be unable to contribute to economic growth, which can be supported by golf industry in employment and industry linkage effect. A new tax system with lower tax on golf course and golfer is needed to develop golf industry, considering tax fairness compared with other industries.