Democratic Party to Freeze Comprehensive Real Estate Tax and Property Tax for Single-Home Households at 2020 Levels

Jo Eung-cheon "Gathered opinions to calculate tax base using 2020 official price for single-home households"

[Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] The Democratic Party of Korea decided on the 21st to pursue a plan to freeze the property tax and comprehensive real estate holding tax (종부세) burden for single-home households at the 2020 level.

Cho Eung-cheon, the Democratic Party whip on the National Assembly Land, Infrastructure and Transport Committee, stated at the party emergency committee meeting that day, "We agreed to calculate the tax base using the 2020 publicly announced property prices so that anyone who owns a single home can have a reduced property tax and 종부세 burden."

The Democratic Party held a meeting of the Policy Committee and standing committee whips that morning, made this decision, and conveyed the related contents to the government. Cho said, "Individual taxpayers do not have to bear a tax burden exceeding the amount paid in 2020 for property tax and 종부세, and their health insurance burden will not increase." Since the publicly announced prices of apartment complexes rose by 19% last year and are expected to increase by around 20% this year, the plan is to levy taxes based on the property prices before the rapid rise in housing prices to prevent an increase in tax burden.

[Image source=Yonhap News]

However, concerns were also raised about the policy to ease the real estate tax burden. Kwon Ji-woong, a member of the emergency committee, said at the meeting, "We should not recklessly take additional measures to reduce real estate taxes," adding, "Since 43% of citizens live as tenants, it is difficult to alleviate citizens' anxiety through easing real estate taxes."

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