Logo of Phnom Penh Post newspaper Phnom Penh Post - Tax burden in South Korea to exceed 20 pct this year

Tax burden in South Korea to exceed 20 pct this year

Content image - Phnom Penh Post
The commercial district of Gangnam is seen in South Korea’s capital. wikicommons

Tax burden in South Korea to exceed 20 pct this year

(The Korea Herald/ANN): South Korea’s tax burden ratio is expected to surpass 20 per cent of its gross domestic product mark for the first time this year, as the government pushes forward expansionist fiscal policies, officials said Sunday.

The nation’s tax income this year is estimated at 365 trillion won ($323.6 billion), up 5.5 per cent from the previous year, according to data compiled by the Ministry of Economy and Finance and Ministry of Interior and Safety.

Of the estimated total, national taxes will account for 287.1 trillion won, up 19 trillion won from the initial target amount, the Finance Ministry said. The Interior Ministry, in charge of local affairs and taxes, suggested that local taxes will total at 77.9 trillion won.

With the country’s estimated GDP at 1,799.6 trillion won, the increase in tax revenues is to raise this year’s tax burden to an unprecedented 20.28 per cent.

The tangible increase in tax revenues was largely attributable to the Moon Jae-in administration’s blueprint of expansive fiscal policies. His policy stress on “income-led growth” and “fair economic order” were backed by a series of tax system revisions, including a hike in the corporate tax rate and expansion of real estate tax brackets.

“Increases in tax earnings will outpace the amount of government spending on earned income and child support systems,” an official of the Finance Ministry said, speculating that the tax burden would continue to increase in the upcoming years.

While some observers expressed concerns over the tax burden, a report by the National Assembly Budget Office showed that the overall level of taxation in Korea would still be one of the lowest among peer countries.

The average tax burden rate for the Organization for Economic Cooperation and Development member states reached 25 percent in 2015, when Seoul’s figure was 18.5 percent, ranking 33rd lowest among 35 states checked, data showed.

MOST VIEWED

  • Would you like fries with that? US burger chain makes Phnom Penh debut

    California-based The Habit Burger Grill restaurant chain is all set to serve up a delicious array of charbroiled burgers and sides at its newest international location in the centre of Phnom Penh. The Habit is “renowned for its award-winning Charburgers grilled over an open flame,

  • Banteay Meanchey flood victims receive aid

    Prime Minister Hun Sen on Wednesday provided aid to more than 10,000 families affected by flooding in Banteay Meanchey province’s Mongkol Borei district and offered his condolences to the 18 victims who drowned in the province over the past week. He said flooding had occured in

  • Angkor provides ‘valuable’ water storage

    The Apsara National Authority (ANA) has stored millions of cubic metres of water at reservoirs in the Angkor area after Cambodia experienced a series of rainstorms over the last few days. The storing of the water, besides serving temple conservation, will also be used to

  • PM urges caution as Polish man tests positive for Covid

    The Ministry of Health on Wednesday reported that a 47-year-old Polish man tested positive for Covid-19 after arriving in Cambodia on Monday. There are a total of six Covid-19 patients currently in the country, all of whom are being treated at the Khmer-Soviet Friendship Hospital

  • Banteay Meanchey floods kill one more as death toll reaches 15

    As floodwaters start to recede in Pursat, Battambang and Pailin provinces and Phnom Penh, Banteay Meanchey continues to bear the brunt as one more person was killed on Monday, bringing the total number of flood-related deaths to 15 in the province this month. Banteay Meanchey provincial

  • Serving coffee with a side of robots

    The eye-catching glass building surrounded by greenery at the intersection of Streets 371 and 2002 in Phnom Penh’s Sen Sok district is more than just another coffee shop where you can while away a few hours. UrHobby House cafe is filled with robots and characters from