'Corporate Tax Boom' National Tax Revenue from January to May Up by 34.8 Trillion Won Compared to Last Year... Progress Rate Approaching 50%

(Source: Ministry of Economy and Finance)

[Asia Economy Sejong=Reporter Son Seon-hee] It has been revealed that national tax revenue collected up to May this year has nearly reached 200 trillion won. With one month left in the first half of the year, the progress rate compared to the annual target is close to 50%. Thanks to the economic recovery continuing since the second half of last year, overall tax revenue has increased, with a significant impact from corporate tax, which surged by more than 60%.

According to the "National Tax Revenue Status as of May 2022" released by the Ministry of Economy and Finance on the 30th, the cumulative national tax revenue as of May totaled 196.6 trillion won, an increase of 34.8 trillion won compared to the same period last year. The overall national tax progress rate is 49.6%.

The "three major tax items"?income tax, corporate tax, and value-added tax?all increased simultaneously. In particular, corporate tax collected up to May amounted to 60.9 trillion won, which is 23 trillion won more than the same period last year (37.9 trillion won). The growth rate reached 60.7%. The corporate tax progress rate up to May was 58.5%, the highest among all tax items, and also exceeded the recent 5-year trimmed average progress rate (53.5%).

This is explained by the Ministry of Economy and Finance as a result of improved performance of major companies last year. According to the ministry, the operating profit of December-settlement corporations listed on the KOSPI last year was 106.8 trillion won, an increase of 58.2% compared to 67.5 trillion won in 2020.

With the recovery of the labor market continuing from the beginning of the year, earned income tax increased, resulting in 9.1 trillion won more income tax collected compared to the same period last year. Due to the lifting of social distancing measures, consumption and imports increased, leading to a 3.7 trillion won rise in value-added tax during the same period.

However, since the government reduced the fuel tax starting November last year, transportation, energy, and environmental taxes decreased by 2.6 trillion won compared to the same period last year. Due to increased economic uncertainty and weakened investment sentiment, securities transaction tax decreased by 1.7 trillion won.

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