Gov't may cancel real estate tax revision: official

SEOUL, Sept. 24 (Yonhap) -- The government is considering scrapping a plan that eases the tax burden on high-end homeownersby raising the tax bar on real estate holdings by up to US$300,000 amid heated criticism that the measure only benefits the wealthy, party officials
said Wednesday.

Disputes are rampant here since the government announced Tuesday it will adjust
the threshold for the so-called comprehensive real estate tax from the current
600 million won ($521,740) to 900 million won.
Up to 200,000 households, mostly in the country's affluent southern Seoul
districts, will be exempted from the real estate taxes once the plan takes
effect, according to the Finance Ministry.
"The general consensus is that tax reforms are inevitable, but details should be
discussed further," an official of the ruling Grand National Party told Yonhap on
condition of anonymity. "Maintaining the 600 million won threshold is one of the
many options."
First introduced in 2005 under the former Roh Moo-hyun administration, real
estate tax is paid in tandem with regular property tax. Some have called the law
a punitive measure against the rich as it levies additional taxes on people with
high-value real estate holdings.
Seoul's incumbent government, headed by conservative CEO-turned-President Lee
Myung-bak, claims the adjustment will help resuscitate the sagging economy by
easing the burden on homeowners. Opponents say the policy is designed only for
the rich and will fan rampant real estate speculation.
hayney@yna.co.kr
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