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The government on Tuesday announced plans to abolish the comprehensive real estate holding tax before the term of the current administration ends. To make up for the loss in revenue, it plans to increase taxes for the wealthy.
Finance Minister Kang Man-soo in a meeting of the Special Committee on Budget and Account in the National Assembly on Tuesday said the comprehensive real estate holding tax is unfair and brutal. ˇ°We will integrate it into the property tax step by step and abolish it in the long term,ˇ± he said.
The government also announced it will introduce a new standard for taxing real estate. Currently, the officially announced standard land price is used to calculate the tax, but from next year a fair market value system will be used. 80 percent of the valuation will be based on the officially announced standard land price, and the remaining 20 percent will on elastic tax rates. This will prevent the government from suffering a sudden loss of tax revenues.
(englishnews@chosun.com )
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