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S. Koreas Tax Revenue Expected to Grow 7.6 pct in 2009

  • Monday, October 6, 2008
  • Source:

  • Keywords:tax, South Korea
[Fellow]
The South Korean government said that despite its efforts to lower the tax burden, the country's tax revenue is expected to grow 7.6 percent in 2009 due to the economic growth and inflation.
 
The Finance Ministry's draft budget plan showed that 179.6 trillion won (US$154.3 billion) will be collected next year as tax, up from 166.9 trillion won (US$143.4 billion) forecast for this year.
 
According to the draft budget plan, income tax revenue is expected to grow 16.1 percent to 42.9 trillion won (36.9 billion U. S. dollars) while corporate tax is predicted to gain 1.5 percent to 39.3 trillion won (US$33.8 billion).
 
Inheritance, value-added and transportation tax revenue will also likely go up 7.7 percent, 9.5 percent and 4.7 percent, respectively, to 3.3 trillion won (US$2.8 billion), 48.5 trillion won (US$41.7 billion) and 11.2 trillion won (9. US$6 billion), the ministry said.
 
The ministry said due to this increase every South Korean will be paying annual tax of 4.67 million won (40, US$121), which is higher than this year's estimation of 4.36 million won ( 37, US$458).
 
However, without the government's recent measure of tax reduction, the per-capita burden would grow higher to reach around 4.97 million won (42, US$699), it said.
 
Meanwhile, the nation's tax burden ratio total amount of tax burden over gross domestic demand is expected to decline 0. 1 percentage point to 22.1 percent in 2009, the ministry added. The ratio stood at 22.7 percent in 2007. –Xinhua
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