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The government and ruling party have agreed to make massive cuts to property-related taxes by way of tackling the recession and inflation. The aim is to support middle and low-income earners and boost domestic demand.
The National Assembly is set to pass a considerable number of tax bills in the second half of this year, with even opposition parties ready to submit their own tax cuts to the house.
A senior government official on Wednesday said a public hearing on Friday will tackle a possible revision of the income tax law. ˇ°We are going to work out a plan to reduce income tax and submit a revision bill to the regular house session in the second half of the year,ˇ± he added.
The government is also reviewing a suggestion from the Grand National Party to slash 1 percentage point off income tax and proposals to overhaul income tax deduction benefits, he said.
Currently, progressive rates for the composite income tax are applied to wage earners and self-employed businessmen in four categories based on their taxable incomes after deductions: 8 percent for taxable income of less than W12 million (US$1=W1,013), 17 percent for between W12 million and W46 million, 26 percent for W46 million to W88 million, and 35 percent for more than W88 million.
(englishnews@chosun.com )
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