Jan-Sep National Tax Revenue Increases by 43 Trillion Won... Capital Market Contraction Leads to Decrease in Capital Gains Tax and Securities Transaction Tax

MoEF, Announces 'September National Tax Revenue Status'

[Asia Economy Sejong=Reporter Kwon Haeyoung] Tax revenue amounted to 318 trillion won from the beginning of this year to September. This is an increase of 43 trillion won compared to the previous year. Corporate tax revenue increased significantly due to improved corporate performance, and income tax and value-added tax also rose. On the other hand, capital gains tax and securities transaction tax decreased due to asset market contraction caused by global monetary tightening.

On the 31st, the Ministry of Economy and Finance announced the 'September National Tax Revenue Status' containing these details.

The cumulative national tax revenue from January to September this year was 317.6 trillion won, an increase of 43.1 trillion won (15.7%) compared to the same period last year. By tax category, corporate tax revenue from January to September was 95.7 trillion won, a sharp increase of 46.9% compared to the previous year. This was due to improved operating profits of KOSPI December fiscal year-end corporations in the first half of this year and last year, and increased corporate tax payments from the installment payment of the interim prepayment last month.

Income tax revenue, centered on earned income tax and comprehensive income tax, recorded 98.7 trillion won, up 13.6% (11.9 trillion won) compared to the same period last year. However, the decrease in capital gains tax offset the increase in earned income and comprehensive income tax, resulting in income tax revenue of 7.7 trillion won for September alone, maintaining the previous year's level. This was due to a 55.5% decrease in housing sales volume and a 26.8% decrease in pure land sales volume in July compared to the same period last year, causing capital gains tax to shrink.

An official from the Ministry of Economy and Finance explained, "Although earned income tax increased due to employment recovery, capital gains tax decreased due to reduced real estate transaction volume, resulting in income tax revenue being collected at the previous year's level."

Value-added tax increased by 8.0% (4.5 trillion won) to 61.1 trillion won during the same period due to increased consumption and imports. This was attributed to retail sales rising significantly to 138.8 trillion won in the second quarter of this year compared to 129.3 trillion won in the same period last year.

On the other hand, transportation, energy, and environmental taxes shrank by 33.5% (4.4 trillion won) to 8.7 trillion won due to temporary reductions in fuel tax. Securities transaction tax also decreased by 36.6% (3 trillion won) to 5.1 trillion won due to a decline in securities trading volume.

The tax revenue progress rate up to September is 80.1%. This means that this amount has been collected out of the annual national tax revenue forecast of 396.6498 trillion won (based on the second supplementary budget). This is 1.6 percentage points higher than the average progress rate over the past five years.

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