Changwon City Sets 33.6 Billion KRW Target for Collecting Deferred Local Tax Arrears... Comprehensive Plan Underway

Changwon City Hall. [Image source=Changwon City]

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Sang-hyun] Changwon City in Gyeongnam announced on the 7th that it has set the goal of clearing local tax arrears at 33.6 billion KRW this year and is implementing a comprehensive plan.

The total local tax arrears carried over to this year in Changwon City amount to 67.3 billion KRW. Automobile tax is the largest at 23.8 billion KRW, followed by local income tax at 23.2 billion KRW, property tax at 13.4 billion KRW, acquisition tax at 3.5 billion KRW, and other tax items at 3.4 billion KRW.

The city set the clearance target at 33.6 billion KRW, which is 50% of the carried-over arrears of 67.3 billion KRW, marking a 3% increase from last year. It will implement a two-track approach by categorizing defaulters into high-amount and habitual defaulters and livelihood-type defaulters, applying different collection methods accordingly.

For high-amount and habitual defaulters, the city operates a ‘Delinquent Tax Collection Task Force’ to strengthen on-site collection activities, promptly secure claims through seizure and public auction, disclose the list of high-amount defaulters, impose exit bans, provide delinquency data to credit information agencies, and enforce various administrative sanctions to enhance collection efforts.

For small business owners and other low-income taxpayers, the city expands collection deferrals, implements license plate seizure and public auction deferrals for livelihood-type delinquent vehicles, releases seizures on non-taxable vehicles recognized as destroyed, and lifts seizures on small financial deposits that have no practical benefit, employing all possible methods to support the economic recovery of defaulters.

Jo Young-wan, head of the Taxation Division, said, “We will do our best to secure stable finances amid increasing welfare demands following the launch of the special city status, and we ask citizens to actively pay their taxes to avoid administrative sanctions and disadvantages caused by tax delinquency.”

This content was produced with the assistance of AI translation services.