Changes will hit 129 firms and are set to in­crease govt rev­enue by 5pc

New Straits Times - - Business -

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.”

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.