Economic Slump, National Tax Revenue Red Light! ... Pohang City Strives to Secure Tax Revenue Measures

City Holds Meeting on Tax Revenue Securing Measures for This Year on the 13th Amid Tax Revenue Crisis

Corporate Operating Profit Drops Due to Typhoon Hinnamnor Damage, Direct Hit to Tax Revenue Securing

Pohang City is focusing its administrative efforts on devising countermeasures by holding a revenue securing strategy meeting, as difficulties in securing tax revenue are expected this year due to the economic downturn and other factors.

On the 13th, Pohang City held a meeting at City Hall, chaired by Vice Mayor Kim Nam-il, to discuss this year's revenue securing measures to overcome the tax revenue crisis.

On the 13th, the city held the 2023 Revenue Securing Strategy Meeting to Overcome the Tax Revenue Crisis in the main conference room of City Hall, chaired by Kim Nam-il, Deputy Mayor of Pohang City, with about 100 participants including heads and team leaders of major revenue departments.

With the economic slump compounded by a decline in stock and real estate transactions, national tax revenue is decreasing this year, and local companies’ operating profits have also declined due to last year’s typhoon damage. As a result, an emergency has been declared for securing local tax revenue this year. At the meeting, departmental collection strategies were discussed to improve the levy and collection rates of local taxes and non-tax revenues.

Of Pohang City’s initial general account budget of 2.245 trillion KRW for this year, the self-generated revenue budget is 570 billion KRW, consisting of 447.4 billion KRW in local taxes and 122.6 billion KRW in non-tax revenues.

The major tax items include local income tax of 163.6 billion KRW, property tax of 98.3 billion KRW, automobile tax of 84.5 billion KRW, and property sale income of 72.6 billion KRW.

However, due to the sharp decline in corporate operating profits caused by last year’s typhoon damage, local income tax is expected to decrease by 12.5 billion KRW; property tax is expected to decrease by 15 billion KRW due to the decline in official real estate prices and value-added tax; and local consumption tax is expected to decrease by 3.2 billion KRW.

Accordingly, through this meeting, the city decided to focus on levy and collection tasks to prevent omission and neglect of collection in each department for both local taxes and non-tax revenues, collaborating collectively to increase revenue. Progress will be monitored through departmental collection performance reporting meetings in the second half of the year.

Additionally, the city plans to strengthen post-management of tax exemptions and reductions, prevent levy omissions through tax audits, expand financial asset inquiries for delinquent taxpayers, increase public auction disposal of chronic delinquent vehicles, conduct on-site collection for high-amount delinquent taxpayers, and provide call center guidance for small-amount delinquent taxpayers to reinforce delinquent tax collection efforts.

Deputy Mayor Kim Nam-il said, “Our city is accelerating preparations for the next 100 years by securing new growth industry engines and actively promoting key projects such as secondary batteries, corporate attraction, and the hydrogen industry. Although a sharp decline in local tax revenue is expected this year due to unprecedented typhoon damage last year, all departments should wisely respond and do their best to secure tax revenue.”

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