Tax Revenue Increases But Expenditure Also Grows

The government has collected W48.8 trillion more taxes in the first half of this year than in the same period of 2020 (US$1=W1,151).

The Ministry of Economy and Finance said Tuesday that W181.7 trillion in taxes were collected in the first six months of this year, already accounting for 64.3 percent of the year's entire estimated amount.

The ministry said the actual increase was probably around W35.5 trillion considering the fact that the government allowed people hit hard by the coronavirus pandemic to defer payments until the second half of last year.

Overheated real estate and stock markets amid an economic recovery led the increase. Corporate tax revenues in the first half totaled W74.7 trillion while income tax revenues totaled W60.3 trillion.

Soaring apartment prices led to W7.3 trillion in additional taxes being collected, while a booming stock market led to W2.2 trillion in stock transaction taxes.

But government expenditures soared as well, resulting in a fiscal deficit of W47.2 trillion.