Progressive Party "Stop Tax Cuts for the Wealthy and Reflect 100% of Actual Transaction Prices in Official Property Prices"

[Asia Economy Reporter Oh Ju-yeon] The Progressive Party criticized the government's planned real estate holding tax relief measures to be announced on the 23rd, stating that "all attempts to undermine the strengthening of holding taxes, such as reverting official property prices to past levels, must be immediately stopped."

In a statement released in the afternoon, the Progressive Party said, "The government will announce the official prices of multi-family housing (apartments, row houses, multi-unit houses) on the 23rd, along with measures to ease holding taxes such as property tax and comprehensive real estate tax (for single homeowners). It is known that a plan to lower the fair market value ratio (the ratio multiplied by the official price to determine the tax base) and effectively revert the official prices used to calculate holding taxes to last year's level is being seriously considered."

The Progressive Party added, "The effective real estate holding tax rate in Korea is only 0.16% of the gross domestic product (GDP), which is cited as a major cause of soaring housing prices. To recover unearned income, the goal should be to reflect 100% of actual transaction prices in the official prices. It is a serious problem that the government is attempting to nullify this through a trick of revising enforcement ordinances, just a little over a year after announcing a roadmap to set official prices at 90% of actual transaction prices by 2035."

They also criticized, "The ruling and opposition parties' 'tax cuts for the rich' competition ahead of local elections is equally deplorable."

The Progressive Party explained, "Ahead of last year's presidential election, the ruling and opposition parties eased the comprehensive real estate tax threshold for single homeowners from 900 million won to 1.1 billion won, providing tax benefits to a very small number of wealthy homeowners. Now, ahead of the local elections, they are actively competing in 'tax cuts for the rich' aimed at winning the votes of wealthy homeowners. President-elect Yoon Seok-yeol pledged to revert official prices to 2020 levels, and within the Democratic Party, there are discussions about limiting the annual increase rate of holding taxes, easing comprehensive real estate tax on homes over 1.1 billion won, and even abolishing comprehensive real estate tax for single homeowners."

They concluded, "Tax cuts for the rich only encourage speculation and deepen inequality. They are far from ensuring housing stability for ordinary citizens."

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