Jan-Apr National Tax Revenue Down by 8.4 Trillion Won... Corporate Tax Collected 12.8 Trillion Won Less

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National tax revenue collected from January to April this year was 8.4 trillion KRW less than the same period last year. This is due to a sharp decline in corporate tax payments by companies amid last year's economic slowdown.

According to the national tax revenue status announced by the Ministry of Economy and Finance on the 31st, national tax revenue from January to April totaled 125.6 trillion KRW, down 8.4 trillion KRW (6.3%) compared to the same period last year.

The progress rate against this year's national tax revenue budget was 34.2%, similar to last year's (33.9%), which recorded the worst tax shortfall in history.

The decrease in corporate tax, one of the three major tax items along with value-added tax and income tax, affected the decline in national tax revenue. Although withholding tax from corporate tax increased by 200 billion KRW due to high interest rates, the payment amount from general and consolidated corporations decreased due to poor corporate performance last year.

As a result, cumulative corporate tax collected from January to April was 22.8 trillion KRW, a sharp drop of 12.8 trillion KRW (35.9%) compared to one year ago. The progress rate of corporate tax against the budget was 29.4%. This is not only lower than last year's 44.2% but also significantly below the recent five-year average of 42.0%.

During the same period, income tax revenue was 35.3 trillion KRW, down 40 billion KRW (-1.1%) compared to the same period last year. Despite an increase of 1.4 trillion KRW in interest income tax due to high interest rates, earned income tax decreased by 1.5 trillion KRW due to reduced corporate bonuses and increased year-end tax refund payments.

Value-added tax increased by 4.4 trillion KRW (12.2%) compared to last year, collecting 40.3 trillion KRW due to increased domestic payment performance.

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