S. KOREA ROLLS OUT STIFF TAX HIKES
Changes will hit 129 firms and are set to increase govt revenue by 5pc
SEOUL Ministry in its annual statement on revisions to the tax code.
The proposed changes in the tax code are subject to parliamentary approval, posing a challenge for the government in passing the bill as Moon’s ruling Democratic Party only holds 40 per cent of the 299 seats in the National Assembly.
The hike would put South Korea’s top corporate income tax rate on par with the average of the world’s 20 major economies, at 25.7 per cent.
To address growing income inequality, “those who are better off, and conglomerates could contribute more to achieve social integration”, said Finance Minister Kim Dong-yeon.
“Spent well, it could boost income for the socially marginalised and increase investment on manpower, and help create a virtuous cycle in the economy.”