Hong Nam-ki "Responsibility for Last Year's Excess Tax Revenue... Enhancing Accuracy of Tax Revenue Forecasts"

[Asia Economy Sejong=Reporter Kwon Haeyoung] Deputy Prime Minister and Minister of Strategy and Finance Hong Namgi stated on the 3rd, "I feel a heavy responsibility for the large-scale excess tax revenue that occurred due to inaccurate tax revenue forecasts, which are a prerequisite for stable fiscal management last year."

At the 56th Taxpayer's Day event held at the Seoul Banking Hall on the same day, Deputy Prime Minister Hong said, "We will improve the accuracy of tax revenue forecasts, which is a prerequisite for stable and efficient fiscal management." Last year, national tax revenue exceeded the government's original budget estimate by 61.4 trillion won.

Hong emphasized, "Government tax revenue should flow in as close as possible to the forecasted figures to minimize distortions in the flow of funds in the national economy," adding, "We must take last year's tax revenue errors as a lesson and follow up with measures to dramatically improve the accuracy of tax revenue forecasts."

To this end, he announced a complete overhaul of this year's tax revenue forecasting mechanism, including ▲enhancing the consistency of tax revenue forecasting models ▲introducing a tax review committee to increase process transparency ▲conducting periodic tax revenue forecasts reflecting economic fluctuations ▲introducing a tax revenue forecasting performance evaluation system.

He also emphasized the need to improve tax fairness, particularly securing vertical and horizontal equity in taxation.

Hong said, "It is necessary to solidly establish the tax base by reducing blind spots in taxation such as preparing for the introduction of financial investment income tax and virtual asset income taxation scheduled for 2023, and strictly responding to unfair tax evasion," adding, "We must also strengthen tax and tax administration support such as expanding tax credits for groups requiring policy consideration like self-employed and low-income earners, adjusting national tax payment deadlines, and complete the task of 'building income identification infrastructure' for nationwide employment insurance and welfare administration this year."

Furthermore, he stated, "It is necessary to strengthen necessary tax support such as supporting economic recovery through consumption and investment promotion and expanding next-generation growth engines," adding, "We will actively promote the one-year extension of the special additional deduction for credit card extra consumption, establish income deductions for increased consumption in traditional markets, and review and improve the effectiveness of various tax support systems for employment support such as employment increase tax credits and social insurance premium tax credits."

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