Koreans' Tax Burden Surpasses 20% This Year

  • By Kim Jung-hoon

    November 09, 2021 12:39

    The tax burden of the Korean public continues to increase and reach 20.2 percent this year, rising above 20 percent for the first time. The proportion of tax in GDP is expected to reach 20.7 percent next year and continue to hover above 20 percent until 2025.

    According to data the Ministry of Economy and Finance submitted to the National Assembly on Monday, the proportion has been rising since 2014 when it was just 17.1 percent, though it dropped a little last year due to the coronavirus pandemic.

    The main increase was in real estate and capital gains taxes.

    There are two ways to slow the increase of fiscal debt. One is to collect more taxes and the other is to reduce fiscal expenditures, and the Moon Jae-in administration has settled for the former as welfare policies alone account for some 50 percent of total fiscal expenditures.

    Korea's fiscal debt is expected to surpass W1.5 quadrillion in 2027 and reach W1.87 quadrillion in 2030.

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