By Kang Yoon-seung
SEJONG, Sept. 18 (Yonhap) — The Ministry of Economy and Finance of South Korea revealed on Monday that the country’s annual tax revenue is estimated to be 341.4 trillion won ($256.7 billion) for the year 2023, a decrease of 59.1 trillion won from its previous projection of 400.5 trillion won.
The decrease is mainly attributed to the global economic downturn and a decline in the semiconductor industry, which affected exports and corporate earnings. In addition, the drop in the number of traded homes led to a lower amount of capital gain tax collected.
Income tax and corporate tax estimates for the year were revised downwards to 114.2 trillion won and 79.6 trillion won respectively.
The government plans to make use of surplus resources, including those from the foreign exchange equalization fund, to counter the decrease in tax revenue. Furthermore, it has no intention of seeking an extra budget to make up for the shortages.
The government also clarified that the tax code revision, which was introduced in July to provide tax cuts for businesses, was not the cause of the adjustment and is necessary to stimulate the economy.
This undated file photo shows the headquarters of the Ministry of Economy and Finance in the central city of Sejong. (PHOTO NOT FOR SALE) (Yonhap)
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