Korea’s tax revenue stretches $46 billion in Jan-Aug, growth stagnates from August

2021.10.12 14:56:32

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South Korea`s tax revenue amounted to 248.2 trillion won ($206.9 billion) in the first eight months of this year, up by over 55 trillion won from the same period a year ago, although the pace of growth in tax income sharply lost steam from August, according to the Ministry of Economy and Finance Tuesday.

The tax collection rate for the period is 79 percent against the government’s target, up 11.6 percentage points last year.

Corporate tax revenue came to 54.9 trillion won for the period, adding 13.1 trillion won from the previous year, with value added tax revenue gaining 8.3 trillion won to 54.1 trillion won in line with economic recovery from Covid-19-hit year-ago period.

Asset-related taxes such as capital gains tax and securities transaction tax increased by 17 trillion won from a year-ago period on hot housing and stock investment.

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The country’s tax revenue increased for the eighth consecutive month in August, but the August gain of 600 billion won dropped by one tenth from a 6.3 trillion-won on-year growth in July as last year’s base effect receded.

Last year tax payments due for May were deferred to a later date in August as part of efforts to support virus-hit small businesses and individuals.

In the eight-month period, the government’s total income, including tax revenue, reached 397.5 trillion won, up 79.7 trillion won from the previous year, while its total expenditure came to 427.3 trillion won, leading to a fiscal deficit of 29.8 trillion won, which an improvement from a shortfall of 70.9 trillion won last year.

The national debt amounted to 927.2 trillion won as of the end of August, up from 819.2 trillion won from the end of last year.

By Minu Kim

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