ID :
21193
Thu, 09/25/2008 - 17:51
Auther :
Shortlink :
http://m.oananews.org//node/21193
The shortlink copeid
S. Korea to push tax cut for high-priced home ownership: official
SEOUL, Sept. 25 (Yonhap) -- South Korea's government will push through its initial plan to lower the controversial tax levied on high-priced houses despite growing criticism against what many view as a measure to benefit the country's elite and wealthy, a senior economic policymaker said Thursday.
On Tuesday, the Finance Ministry announced its plan to raise the tax base for
homes subject to the comprehensive real-estate holding tax from the current 600
million won (US$521,740) to 900 million won, with tax rates to be trimmed by a
third.
The government-led tax measure sparked criticism from opposition parties and even
some ruling Grand National Party lawmakers that the move is in the interest only
of the rich. The latest tax overhaul will apply to around 1 percent of the
nation's total households.
"The overhaul plan for the real-estate holding tax will be submitted to the
National Assembly as initially scheduled although the final decision will be in
the hands of lawmakers as it requires legal revision." Vice Finance Minister Kim
Dong-soo told a local radio program.
The ownership tax, which levies taxes on high-priced real estate holdings by a
household, was first introduced in 2005 by the liberal Roh Moo-hyun government.
The move drew a backlash from conservatives, who allege the tax scheme is a form
of "double" taxation that penalizes only the wealthy.
As for growing concerns that the government might consider raising the property
tax that applies to a broader range of population in order to fill the budget gap
following the reduction in the real estate holding tax, Kim dismissed the
concerns, saying that there is "no such a plan."
Currently, tax revenue from the holding tax is diverted to provincial
governments, which use the money for their welfare and education policies for
people in their regions.
The proposed cut in the tax has spawned worry that the government has to raise
taxes in other areas to avoid the budget problem and concerns are rampant that
the government is trying to benefit the rich people at the expense of ordinary
people by hiking property tax.
kokobj@yna.co.kr
(END)
On Tuesday, the Finance Ministry announced its plan to raise the tax base for
homes subject to the comprehensive real-estate holding tax from the current 600
million won (US$521,740) to 900 million won, with tax rates to be trimmed by a
third.
The government-led tax measure sparked criticism from opposition parties and even
some ruling Grand National Party lawmakers that the move is in the interest only
of the rich. The latest tax overhaul will apply to around 1 percent of the
nation's total households.
"The overhaul plan for the real-estate holding tax will be submitted to the
National Assembly as initially scheduled although the final decision will be in
the hands of lawmakers as it requires legal revision." Vice Finance Minister Kim
Dong-soo told a local radio program.
The ownership tax, which levies taxes on high-priced real estate holdings by a
household, was first introduced in 2005 by the liberal Roh Moo-hyun government.
The move drew a backlash from conservatives, who allege the tax scheme is a form
of "double" taxation that penalizes only the wealthy.
As for growing concerns that the government might consider raising the property
tax that applies to a broader range of population in order to fill the budget gap
following the reduction in the real estate holding tax, Kim dismissed the
concerns, saying that there is "no such a plan."
Currently, tax revenue from the holding tax is diverted to provincial
governments, which use the money for their welfare and education policies for
people in their regions.
The proposed cut in the tax has spawned worry that the government has to raise
taxes in other areas to avoid the budget problem and concerns are rampant that
the government is trying to benefit the rich people at the expense of ordinary
people by hiking property tax.
kokobj@yna.co.kr
(END)
