The South Korean Ministry of Economy and Finance reported on Tuesday that the nation’s tax revenue had decreased by 50.9 trillion won (US$37.73 billion) in the first nine months of 2023, compared to the same time period the year before. This sizeable decline was mainly attributed to weak corporate activity and the long-lasting slump in the property market.
The total amount of taxes collected from January to September was 266.6 trillion won, a 16% decrease from the 317.6 trillion won gathered in the same period in 2022. During September alone, the government gathered 25 trillion won in taxes, an 11.7% decrease from the previous year.
The primary cause of the decrease was the fall in corporate taxes, which dropped 24.9% to 71.9 trillion won. Listed companies in South Korea reported 14.6 trillion won of operating profits combined in the first half of this year, a significant decrease from the 56.4 trillion won from the year before.
The amount of income tax collected also decreased by 14.4%, amounting to 84.6 trillion won due to the declining number of home transactions. The value-added tax collected also dropped 10.2% to 54.9 trillion won due to lack of private consumption and a decrease in imports.
In light of these figures, the ministry revised its annual tax revenue estimate to 341.4 trillion won, a 59.1 trillion won decrease from the original forecast.
An official checks 50,000-won notes at a Seoul bank, in this file photo taken Sept. 25, 2023. (Yonhap)
graceoh@yna.co.kr
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