Gyeonggi-do Collects About 1 Trillion Won Less in Provincial Taxes in First Half of Year Due to Real Estate Slump

Gyeonggi Provincial Government

The amount of provincial tax collected in Gyeonggi-do is tentatively estimated to have decreased by about 1 trillion won compared to last year. This is because related tax revenues, such as acquisition tax, sharply declined due to the real estate market not recovering.

According to Gyeonggi-do on the 26th, the provincial tax collection amount for the first half of this year was 6.7019 trillion won, which is 41.8% of this year's collection target (16.0246 trillion won). This is about 8% less than the first half collection target rate. Also, compared to the amount collected during the same period last year (7.6861 trillion won), it decreased by 984.2 billion won (12.8%).

This year's main budget size increased by 206.8 billion won (0.6%) compared to last year, and the provincial tax collection target increased by 287.7 billion won (1.8%) compared to last year (settlement amount), but the decrease in tax revenue has triggered a red light for the provincial finances.

By tax item, acquisition tax was collected at 3.8659 trillion won, a sharp decrease of 862.7 billion won (18.2%) compared to the same period last year (4.7286 trillion won). The local education tax, which is linked to acquisition tax, also decreased by 76.3 billion won (8.5%).

The decrease in acquisition tax is mainly due to the real estate market slump that began in the second half of last year. Although the apartment sales volume in the province, which accounts for 25% of acquisition tax revenue, increased by 74.4% in the first half of this year compared to the first half of last year, the total real estate sales volume in the province decreased by 19.6%. The total real estate sales volume is less than half compared to the year before last.

In addition, the local consumption tax, which is linked to value-added tax, temporarily increased in the first quarter due to the recovery of daily life but returned to a downward trend, resulting in 66.3 billion won (4.0%) less collected in the first half compared to last year.

Accordingly, Gyeonggi-do has designated the period until next month as a 'special collection measure period' and plans to focus on discovering tax sources through tax audits, delinquent tax collection, investigations of tax exemptions and reductions, and collection reporting meetings with cities and counties.

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