Vice Minister Ki Jae: "Tax Reform Is Not at All Considering Tax Increase"

Briefing on the Results of the 8th Emergency Economic Central Countermeasures Headquarters Meeting

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] Kim Yong-beom, First Vice Minister of the Ministry of Economy and Finance, emphasized on the 25th that "the tax reform is not at all considering a tax increase" in relation to the financial tax system reform.

At a briefing on the results of the 8th Emergency Economic Central Countermeasures Headquarters (Economic Central Headquarters) meeting held at the Government Seoul Office Building that day, Vice Minister Kim said, "The tax system is basically reformed to be revenue-neutral."

Vice Minister Kim mentioned that abolishing the securities transaction tax could cause market price distortions. He stated, "If the securities transaction tax is abolished, ultra-short-term trading and high-frequency trading through programs could occur." He added, "The securities transaction tax also serves as an appropriate control measure against this, so it is not solely for revenue purposes."

Vice Minister Kim also added, "Global financial centers such as the UK, Hong Kong, and Singapore still have transaction taxes."

Im Jae-hyun, Director of the Tax Policy Division at the Ministry of Economy and Finance, who attended the briefing, said regarding the special deduction system for long-term holding in the real estate market, "(Real) tangible assets have nominal value increases due to inflation, so a special deduction for long-term holding is applied." He continued, "Financial assets like stocks have different aspects, and cases where a special deduction for long-term holding is applied simply because financial assets are held for a long time are very rare."

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