Gov't, ruling party to push for tax reform amid high inflation, low growth rate

Seoul [South Korea], July 18:The ruling People Power Party (PPP) and the government agreed Monday to actively consider tax reform to revitalize the economy and improve people's lives, officials said.
The PPP and the government held a policy consultation meeting at the National Assembly and discussed tax reform measures, including lowering the corporate tax and the income tax for the lower and middle class, as well as amending the real estate tax system.
"We have shared views there is a need to restructure the tax system in accordance with principles of taxation to improve economic vitality and stabilize people's lives," Rep. Sung Il-jong, the PPP's chief policymaker, told reporters after the meeting.
The party, in particular, asked the government to devise measures to relieve the burden of income tax for lower income earners and the middle class suffering from financial difficulties due to high inflation, Sung said.
Sung also said the party called for a reduction of the corporate tax and the inheritance tax for small and midsized businesses as part of efforts to induce corporate investment and the creation of jobs.
"The party and the government have agreed that the tax system is estranged from the global standard and undermines the country's tax competitiveness," Sung said.
Last week, Finance Minister Choo Kyung-ho said South Korea's corporate tax is too high compared with the average of member states of the Development Assistance Committee of the Organization for Economic Cooperation and Development (OECD), adding the government is considering lowering the tax rate to 22 percent from 25 percent.
Source: Yonhap