[2023 National Audit] Choo Kyung-ho: "Less Tax Collected Is Not Due to Tax Reform"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho emphasized on the 20th, "The decrease in tax revenue is not due to tax reform, but because the economic situation is difficult, resulting in less tax being collected."

At the National Assembly's Planning and Finance Committee audit held that day, Kim Ju-young, a member of the Democratic Party of Korea, pointed out, "We must acknowledge that we failed to catch two rabbits at once: tax cuts and fiscal soundness," adding, "The common people and middle class are suffering the most in the economic collapse." He further stated, "This year, the corporate tax revenue shortfall reached 25.4 trillion won, while earned income tax increased by about 1.2 trillion won," and "Contrary to the government's intentions, corporations did not increase investment," attributing the tax revenue shortfall to the tax reform carried out under the Yoon Suk-yeol administration.

In response, Deputy Prime Minister Choo said, "The fact that tax revenue came in less than initially projected means that the government actually collected less tax from the private sector, households, and businesses than it intended," adding, "It is not that tax revenue decreased because tax rates were lowered, but because the economic situation is difficult."

He continued, "The decrease in corporate and income taxes is due to a much worse-than-expected decline in the asset market and corporate income, causing a drop in tax revenue, while the increase in earned income tax is a natural rise due to employment growth and a slight increase in wages." He added, "Last year, the ruling and opposition parties agreed on a tax reform plan that adjusted the tax base to reduce the tax burden on the lower income brackets of income tax."

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is responding to a lawmaker's question during the audit of the Ministry of Economy and Finance held by the National Assembly's Planning and Finance Committee on the 20th. Photo by Hyunmin Kim kimhyun81@

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