Discussion on 'Abolishing Comprehensive Real Estate Tax' at the Special Committee on Fiscal Taxation... "Consultation with Opposition Parties as well"

Concerns Over Polarization Promotion Addressed with "Consulting Government for Prevention"

The People Power Party's Special Committee on Fiscal and Tax Reform held a forum at the National Assembly to discuss the direction of easing the Comprehensive Real Estate Holding Tax (종부세). However, there was no consensus on the complete abolition of the 종부세.

Song Eon-seok, chairman of the People Power Party's Special Committee on Fiscal and Tax Reform, is speaking at the first discussion meeting of the Special Committee on Fiscal and Tax Reform titled "First Comprehensive Real Estate Tax Rational Reform Direction" held at the National Assembly on the 12th. This is the first time the ruling party and government have gathered for follow-up discussions since the Presidential Office announced tax reform plans including the comprehensive real estate tax at the end of last month. Photo by Kim Hyun-min kimhyun81@

Song Eon-seok, chairman of the Special Committee on Fiscal and Tax Reform, told reporters after the forum on the 12th, "There were opinions that the 종부세 should be abolished, and also opinions that it should be abolished and integrated into the property tax," adding, "Some expressed concerns that it would be difficult to eliminate the 종부세 easily because local government revenues would decrease."

He continued, "Many lawmakers agreed with the opinion that the 종부세 should be exempted for single-home owners," and added, "The heavy taxation on multiple-home owners remains for those owning three or more homes, and there were many opinions that this heavy taxation on multiple-home owners should be abolished, including that part."

Chairman Song said, "Since the Democratic Party holds an overwhelming majority in the National Assembly, the law revision will never be done solely according to our will," and added, "We must gather our opinions and, of course, consult with the opposition party." He further explained, "The leader of the largest party in the National Assembly, which has over 170 seats, announced that adjustments regarding the 종부세 are necessary, so we fully agree," and said, "There is a considerable possibility that (differences) will be adjusted and passed."

Chairman Song also said, "If opinions are agreed upon within the special committee, the party leadership will largely agree as well," and added, "Depending on the situation, it may even be proposed as a party policy." When asked about concerns that exempting the 종부세 for single-home owners could promote polarization, he replied, "This issue has been raised for a long time and is well known by many people, so we will discuss it sufficiently with the government to ensure such problems do not occur."

Additionally, Chairman Song emphasized, "When working in standing committees at the National Assembly, it has often been the case that government officials were requested to attend when necessary, even if it was not a special committee," and said, "If the special committee activities are at the level of standing committee activities, it is only right for government officials to attend. The government and the ruling party are one and the same, aren't they?"

At the meeting, government officials including Kim Byung-hwan, First Vice Minister of Strategy and Finance, attended. The special committee plans to hold about five more meetings to discuss ▲ fiscal rules ▲ inheritance and gift taxes ▲ support measures for corporate activities, among other topics.

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