Logo of Phnom Penh Post newspaper Phnom Penh Post - SK gov’t eyes heavier taxes on real estate



SK gov’t eyes heavier taxes on real estate

SK gov’t eyes heavier taxes on real estate

The Korea Herald/ANN: South Korea is facing another set of brawls this year concerning taxation equity and wealth distribution, as the government and ruling party signalled at further toughening tax rules for affluent property owners, according to officials Monday.

Detailed prospects, however, remain unclear as related ministries held different stances over the reduction of benefits for lease business operators – an action that may deliver a blow upon the government’s policy credibility.

“We will begin discussing with the ruling party on ways to reinforce the comprehensive real estate tax bill,” said an official of the Ministry of Economy and Finance.

“As the government bill [on the agenda] already exists, the upcoming alterations are likely to involve stronger regulations [on the comprehensive tax].”

The ministry had proposed in July a set of tax hike plans, focusing on raising the tax rate on owners of multiple homes and of high-priced properties, as part of its effort to level off skyrocketing prices and to reduce the widening income gap.

The scheme included a tax rate hike for real estate priced at 600 million won ($540,000) or more, with the maximum rate to be raised to 2.5 per cent from the current 2 per cent.

While the government-led proposal involves a tax boost amounting to 742 billion won next year, the ruling progressive Democratic Party of Korea has been pushing ahead with more drastic taxation scenarios.

“The government should strongly consider strengthening the comprehensive real estate tax on those who own more than three apartments or high-priced apartments,” said Representative Lee Hae-chan last week during his first meeting as party chief with senior officials of Cheong Wa Dae.

As the nation’s fiscal headquarters, the Finance Ministry is taking a more prudent stance over flip-flopping on the policy announced only months ago.

“[The tax benefits] had the intended effect of encouraging multi-home owners to register themselves as business operators, but also contributed to the housing price hike,” said an official from the ministry.

“We shall keep a close watch on market situations before taking actions.”

MOST VIEWED

  • Kingdom's Covid cluster cases jump to 194

    The Ministry of Health on February 25 confirmed 65 new cases of Covid-19, with 58 linked to the February 20 community transmission. The latest cluster cases include nine Vietnamese nationals, five Cambodians, one each from Korea, Singapore and Japan, with the rest being Chinese. This brings the total number

  • Locations shut, dozens more Covid-19 positive

    The Ministry of Health has closed 23 locations in connection with the February 20 community transmission of Covid-19 and summoned for testing anyone who had direct contact with affected people and places. The number of discovered related infections has risen to 76, including 39 women. In a press release,

  • Cambodia's Covid cluster cases rise to 137

    The Ministry of Health on February 24 recorded 40 more cases of Covid-19, with 38 linked to the February 20 community transmission. Of the 40, two are imported cases involving Chinese passengers. The 38 include two Vietnamese nationals and one Cambodian, with the rest being Chinese. This brings the total cases

  • Covid cluster raises alarm, health bodies urge vigilance

    The Ministry of Health and the World Health Organisation (WHO) in Cambodia have expressed great concern over the February 20 cluster transmission of Covid-19 in the community. Both entities appealed for vigilance and cooperation in curbing further spread of the virus. Ministry spokeswoman Or Vandine said

  • PM confirms third Covid-19 community transmission

    Prime Minister Hun Sen on February 20 announced the Kingdom's third outbreak of Covid-19 community transmission after 32 people tested positive in just over 10 hours. Addressing the public from his residence after an emergency meeting, Hun Sen said: "I dub it February 20 Community Event, in which 32 cases

  • Cambodia's cluster cases jump to 259

    The Ministry of Health on February 27 recorded 26 more cases of Covid-19 linked to the February 20 community transmission, bringing the total to 259 in one week. The 26 include three Vietnamese nationals and one Cambodian, with the rest being Chinese. The ministry noted that five of the Chinese