S. Korea's tax benefits surge on oil tax refunds in 2008

SEOUL, Dec. 2 (Yonhap) -- South Korea's tax benefits jumped 29 percent this year as the government intensified efforts to help low-income people tide over skyrocketing crude oil prices by reducing their tax burden, a government report showed Tuesday.

According to the report by the Finance Ministry, the total amount of tax benefits
for this year including tax cuts and exemptions stood at 29.63 trillion won
(US$20.32 billion), compared with 22.96 trillion won a year earlier.
Most increases stemmed from tax refunds worth 3.75 trillion won provided for
households and truckers hard hit by soaring international crude prices, which
surpassed $140 per barrel in mid-July.
The remainder included benefits for small and medium-sized enterprises and
corporate activities on research and development, which will help strengthen the
nation's "growth potential," the ministry explained.
The 2008 tax benefits accounted for 15.1 percent of the nation's state tax
revenues, higher than 12.5 percent a year earlier, the report showed. The ratio
will likely fall to 13.9 percent next year as such a one-off tax refunds for oil
consumption will not be included, it added.