Jan-May National Tax Revenue Down by 36.4 Trillion Won... Corporate Tax Declines Amid Export Slump

This year, the decline in national tax revenue has exceeded 36 trillion won, continuing the tax shortfall situation. Even if the same level of taxes as last year is collected during the remaining period, this year's tax revenue will fall short by 41 trillion won compared to the revenue budget (400.5 trillion won).

According to the national tax revenue status announced by the Ministry of Economy and Finance on the 30th, the cumulative revenue from January to May was recorded at 160.2 trillion won. Compared to the same period last year (196.6 trillion won), tax revenue is short by 36.4 trillion won. Considering the increase of 10.2 trillion won in tax support for export-import companies compared to the previous year, as explained by the Ministry, the actual tax shortfall approaches 26.2 trillion won.

The progress rate, which indicates actual tax revenue against the revenue budget, is also sluggish. The progress rate in May was 40.0%, 9.7 percentage points lower than last year's 49.7%. This is the lowest level since 2000. The gap in the progress rate increased compared to the previous month (8.9 percentage points). This means the speed of tax collection is slowing down. Compared to the average progress rate over the past five years (47.5%), it is also 7.5 percentage points lower.

The decrease in corporate tax is identified as a major cause of the tax shortfall crisis. Corporate tax amounted to 43.6 trillion won due to the global economic slowdown and sluggish exports. Compared to last year's 60.9 trillion won, this is 17.3 trillion won (28.4%) less. Achieving the government's corporate tax target of 105 trillion won this year also appears uncertain. Choi Jin-gyu, head of the Tax Analysis Division, said, "Corporate tax has continued to decline due to decreased operating profits last year."

Income tax was recorded at 51.2 trillion won, down 9.6 trillion won due to a decrease in real estate transactions and the base effect of comprehensive income tax. The decrease in comprehensive income tax (-2.4 trillion won) caused by the extension of the mid-term payment deadline for small-scale self-employed persons and the reduction in capital gains tax played a significant role. The Ministry of Economy and Finance analyzed that although some tax payments increased due to the final comprehensive income tax filing last month, it was not enough to cover the decrease in capital gains tax. From November last year to March this year, housing sales volume decreased by 31.3% compared to the same period last year, and pure land sales volume decreased by 38.0%.

During the same period, value-added tax was recorded at 33.5 trillion won, down 3.8 trillion won. Transportation tax decreased by 600 billion won to 4.4 trillion won due to the temporary reduction of fuel tax. However, the government also forecasted the possibility of some tax revenue increase in the second half of the year. The government stated, "If consumption recovers, the value-added tax payment next month may increase, and capital gains tax may also increase depending on transaction results."

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