POST Online Media Lite Edition


Tax revenue jumps 23 percent in South Korea

Staff writer |
South Korea's tax revenue surged greatly from a year earlier in the first four months partly on an increase in corporate and income taxes that may reflect a rise in consumption.

Article continues below

In the January-April period, the government collected 96.9 trillion won ($83.2 billion) in taxes, up 23 percent, or 18.1 trillion won, from the same period last year, according to the Ministry of Strategy and Finance.

The four-month tally represents 43.5 percent of the government's annual target of 222.9 trillion won.

Corporate tax gained 5.6 trillion won from a year earlier to 23.5 trillion won in the first four months of the year, while the revenue from value-added taxes came to 30 trillion won, up 5.5 trillion won over the cited period.

"Corporate tax increased on the improved earnings of local companies with a fiscal year ending in December, while value-added tax rose on improvements in consumer spending in the first quarter," the ministry said in a press release.

The ministry added consumer spending expanded 2.1 percent on-year in the first quarter, following a 3.3 percent hike in the previous quarter.

Income taxes also added 3.9 trillion won from a year earlier to 21 trillion won, reflecting a rise in income and the recent increase in real estate transactions, the ministry said.

With a sharp rise in tax revenue, overall government income also climbed to 150.8 trillion won from 132.8 trillion won a year earlier.

As of end-April, overall government debt stood at 582.9 trillion won, up from 574.9 trillion won a month earlier. The ministry said the on-month rise in debt was only temporary, as the government pays back its debt every three months while it issues fresh state bonds each month.

What to read next

German inflation jumps to 1.8%
China's fiscal revenue growth quickens
U.S. economic confidence jumps, falls in August