Tax revenue increases W17 tril. through August

The government’s tax revenue increased in the first eight months of the year compared to the same period last year, government data showed Friday.

According to the Ministry of Strategy and Finance, tax revenue amounted to 189.5 trillion won ($167.4 billion) from January to August, up 17.1 trillion won from the previous year.

In August alone, the government collected 20.8 trillion won, up 3.8 trillion won year-on-year.

The amount is equivalent to 75.5 percent of this year’s tax revenue target of 251.1 trillion won.

The surge in income for state coffers came after revenue from major tax sources showed increases.

From January to August, revenue from corporate taxes rose 6 trillion won, while income tax and value added tax increased by 5 trillion won and 3 trillion won, respectively.

As of August, the government posted a 17.4 trillion won surplus in the consolidated central government balance, up 1.6 trillion won from last year.

The amount of central government debt stood at 640.2 trillion won, up 4.5 trillion won from a month earlier.

“On the heels of recent improvements in exports, the country’s economic growth momentum is represented in increased tax revenue and improvements in its fiscal balance,” a ministry official said.

“However, there is an obvious necessity to enhance efforts to control risks stemming from the United States and China and stabilize the momentum.”

Korea’s two major trading partners are locking horns with Korea over the Korea-U.S. free trade agreement and China’s economic retaliation regarding the deployment of a U.S. anti-missile system here.

The government has been enjoying surging tax revenue since last year. In 2016, the government collected 233.3 trillion won in taxes, up 12 percent from the previous year.