Real Estate and Stock Market Boom... Last Year's Agricultural Special Tax Hits a Record 6.2 Trillion Won
Analysis of Assemblyman Seo Byung-su... 4.3 Trillion Won Collected from Real Estate and Stock Market
[Sejong=Asia Economy Reporter Kim Hyunjung] Last year, as real estate and stock prices soared, the Special Rural Tax on asset transactions (Nongteukse) exceeded 6 trillion won, marking the largest scale ever recorded.
According to data received from the National Tax Service by Seo Byungsoo, a member of the People Power Party on the National Assembly's Planning and Finance Committee, last year's Nongteukse revenue was 6.2596 trillion won, an increase of 2.3617 trillion won (60.6%) compared to the previous year, setting a record high. Of this, 3.6157 trillion won came from securities transaction tax, and 679.9 billion won was additional tax on comprehensive real estate tax. 68.6% (4.2956 trillion won) of the total Nongteukse revenue was collected from asset taxation. The proportion of asset taxation relative to Nongteukse revenue rose by 13.7 percentage points from 54.9% the previous year.
Currently, Nongteukse is imposed at 0.15% each time an investor trades stocks on the Korea Composite Stock Price Index (KOSPI), and an additional 20% Nongteukse is levied when comprehensive real estate tax is imposed. Additionally, Nongteukse is separately applied to individual consumption taxes on items such as golf courses, luxury furniture, and fur. The taxes collected in this way are used to strengthen agricultural and fishery competitiveness and for environmental improvement projects.
Introduced in 1994 following the Uruguay Round agreement, Nongteukse was initially planned as a temporary tax imposed for 10 years to support farmers and fishermen affected at the time, but after two extensions, the imposition period has been extended until June 2024.
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Some argue that Nongteukse is no longer necessary in the current era and that structural redesign is needed. Seo Byungsoo stated, "When Nongteukse was first introduced in 1994, tax capacity was insufficient, but now farmers and fishermen can be sufficiently supported through general taxes," adding, "The Ministry of Economy and Finance should take the lead in redesigning the overall revenue and expenditure structure of earmarked taxes, including Nongteukse, which have fulfilled their historical mission, and coordinate interests among ministries."
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