(EDITORIAL from Korea Times on Nov. 23)

Asia's Tech News Daily

Property tax bomb
Punitive real estate tax needs overhaul

The Moon Jae-in administration is facing growing tax resistance from owners of multiple and high-priced homes who will have to pay a much higher property tax from next month. The number of people subject to the so-called comprehensive real estate tax amount to 947,000 this year, up 42 percent from 667,000 last year, the Ministry of Economy and Finance said Monday. This accounts for 1.8 percent of the nation’s total population. They must pay a combined 5.7 trillion won ($4.8 billion) in taxes this year, up more than 200 percent from last year.

The comprehensive real estate tax, introduced in 2005 to curb property speculation, is levied on owners of multiple homes with a combined state-assessed home value surpassing 600 million won. Owners of one home must also pay when their home is valued at over 1.1 billion won, a taxation base which was previously set at 900 million won.

It appears inevitable to see the sudden upsurge in the real estate tax amid a sharp rise in home prices coupled with higher tax rates aimed at fighting property speculation. However, complaints are growing over the “tax bomb.” The Moon administration cannot deflect criticism for attempting to pass the buck on to the people because it has failed to stabilize housing prices with its misguided anti-speculation polices. The government should not say that there is no problem with the punitive tax as less than 2 percent of Koreans are affected by the soaring burden ― not the majority of taxpayers.

What is worrisome is that tenants are likely to bear the brunt of the heavy taxation as landlords are certain to raise rents to mitigate their higher tax burden. An increasing number of owners of multiple homes have bequeathed part of their property to their children or other family members to avoid taxes. By September this year, the number reached 63,054, the second largest since 2006 when relevant surveys began.

The mounting tax burden has also ignited a heated debate among major presidential candidates. Yoon Seok-youl of the main opposition People Power Party (PPP) has pledged an overhaul of the current system. “Once I am elected president, I will either integrate the comprehensive real estate tax into the property tax or exempt the owners of one home from the taxation.” Yoon is seemingly trying to highlight President Moon’s policy failures regarding housing speculation in order to woo disgruntled voters in the run-up to the March 9 presidential poll.

In contrast, Lee Jae-myung of the ruling Democratic Party of Korea (DPK) has expressed opposition to the idea of abolishing the punitive tax. “Instead of doing away with the comprehensive tax and thus reducing the tax burden on the rich, we need to make sure taxes collected from real estate can be provided to more people.” Lee is apparently attempting to defend Moon’s real estate policies and make a pitch for his populist idea of redistributing wealth to the poor.

We call for an overall review of the punitive tax scheme ― but this does not necessarily mean abolishing it. Tax systems should never be interfered with for the sake of politics or ideology. What is most urgent is to modify the current system to correct its problems and ease the tax burden on owners of only one home who have nothing remotely to do with property speculation.
(END)

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

Far East, Arctic development corporation to assist Nornickel in ecology, tourism projects

According to Nornickel’s Vice President Andrei Grachev, the company’s investment program plans investments in various projects in the amount of $30 billion, where 6 billion are planned for ecology projects Read more »

Nornickel: Taimyr to host indigenous peoples' international forum in 2022

The event will be organized in the framework of Russia’s chairing the Arctic Council Read more »

WTO joint statement to enhance transparency in services industry

gettyimagesbank By Lee Kyung-min Korean firms will be able to expand their overseas business more efficiently, a move outlined in a joint initiative statement signed by 67 member countries of ... Read more »

India's services sector activity in November registers second-fastest pace of growth since July 2011: Survey

Representative image of hotel lobby. India’s services sector activity expanded at the second-fastest pace in more than a decade during November, driven by sustained rise in new work and improvement ... Read more »

(2nd LD) Nat'l Assembly passes record 607.7 tln-won gov't budget for 2022

(ATTN: ADDS finance chief’s comments, nat’l debt in last 4 paras)By Lee Haye-ah SEOUL, Dec. 3 (Yonhap) — The National Assembly passed the 2022 government budget Friday, a record high ... Read more »

Singapore retail sales rise 7.5% in October but F&B sees drop amid Covid-19 dine-in curbs

SINGAPORE – Retail sales in Singapore saw better-than-expected growth in October despite tighter Covid-19 restrictions, partly due to higher mobile phone sales from new product launches. Takings at the till ... Read more »

Daewoo Shipbuilding wins 383 bln-won order for offshore facility

By Nam Kwang-sik SEOUL, Dec. 3 (Yonhap) — Daewoo Shipbuilding & Marine Engineering Co. (DSME) said Friday it has signed a 383 billion-won (US$325 million) deal to build a wind ... Read more »

Dollar rises to 73.84 rubles on Moscow exchange

Euro moves up to 83.5 rubles Read more »

Online shopping hits record high in Oct. amid COVID-19 pandemic

SEOUL, Dec. 3 (Yonhap) — Online shopping in South Korea hit a record high in October on the back of solid demand for food delivery services and electronic goods amid ... Read more »

Imported car sales fall 31 pct in Nov. amid chip shortages

SEOUL, Dec. 3 (Yonhap) — Sales of imported vehicles in South Korea fell 31 percent in November from a year earlier as chip shortages continued to disrupt vehicle production and ... Read more »

Hiring was likely strong and employers boosted wages in November, economists say

A worker moves boxes of goods to be scanned and sent to delivery trucks during operations on Cyber Monday at Amazon's fulfillment center in Robbinsville, New Jersey, November 29, 2021. ... Read more »

China introduces restrictions for import of goods from Russia - consulate-general

Since November 29, Suifenhe railway station temporarily does not accept box railcars from Russia with goods requiring manual unloading Read more »

OPEC+ output decision due to balanced market, demand recovery, says Novak

According to the Russian deputy prime minister, such decision was made mainly due to the fact that the market was balanced, the demand was gradually recovering Read more »

Russia to scale up oil production by 109,000 barrels per day in January 2022

The next meeting of OPEC+ countries will be on January 4, 2022 Read more »

Rosatom: Northern Sea Route needs 14 icebreakers by 2030

According to Rosatom’s Deputy Director General Vyacheslav Ruksha, presently, the shipbuilding sector cannot meet the demand to satisfy the Northern Sea Route’s regular shipments Read more »

About 12 million tonnes of Taimyr coal to be shipped via Northern Sea Route after 2030

Northern Star’s project is the development of a coal deposit. The capacity at the initial stage would be 5 million tonnes a year, and the annual capacity by 2032 will reach up to 20 million tonnes Read more »

Kremlin credits ‘special' 2022 gas price for Belarus to privileges under integration deals

Based on the deal inked by the two parties, the fuel price for Minsk for 2022 was set at $128.52 per 1,000 cubic meters Read more »

Rosatom: Sibir nuclear-powered icebreaker expected in Kara Sea in January

The Sibir nuclear-powered icebreaker is the second vessel of Project 22220, built by the Baltic Shipyard Read more »

OPEC+ ministers discussing base plan of oil production recovery

OPEC+ member-states are restoring oil production at the pace of 400,000 barrels per day since August and this plan is the base one Read more »

National Assembly ratifies RCEP trade pact

SEOUL, Dec. 2 (Yonhap) — South Korea’s parliament on Thursday ratified the Regional Comprehensive Economic Partnership (RCEP), a regional free trade agreement that encompasses about one-third of the world’s gross ... Read more »

U.S. weekly jobless claims total 222,000 vs. 240,000 estimate

Initial claims for unemployment insurance rose last week but held at levels consistent with how the job market looked before the Covid-19 pandemic devastated the U.S. jobs picture, the Labor ... Read more »

OPEC+ monitoring committee makes no recommendation for January production level

The ministerial conference to start soon Read more »

OPEC+ monitoring committee starts discussing January plan — source

The ministers also to touch on the oil market report prepared by the OPEC+ technical committee the day before Read more »

Wildberries enters Turkish market

The company offers buyers in Turkey about 5.6 mln items of goods from 163,000 international brands Read more »

Focused discussion of Union State's common currency not underway, says Kremlin

According to Dmitry Peskov, the integration stage "does not imply the introduction of the common currency" Read more »

Framework for creation of common digital space established in EAEU, says Russian PM

"The creation of a whole ecosystem of digital projects, independent and integrated, which will enhance the integration cooperation, lies ahead," Mikhail Mishustin said Read more »

RSV Mikhail Somov returns from Northern Sea Route ice trap to home port

The ship has delivered cargo to 32 stations Read more »

(2nd LD) S. Korea's Q3 economic growth unchanged at 0.3 pct: BOK

(ATTN: ADDS GNI figures in last 3 paras)By Koh Byung-joon SEOUL, Dec. 2 (Yonhap) — South Korea’s economy grew at the same pace as earlier forecast in the third quarter ... Read more »

Hainan's Haikou Meilan International Airport opens new terminal

Its area of the terminal is almost 300 thousand square meters Read more »

Inflation woes grip Korean economy

Deputy Prime Minister and Finance Minister Hong Nam-ki. Korea Times file Consumer prices jump at fastest pace in nearly 10 years By Lee Kyung-min The much-dreaded persistence of inflation is ... Read more »

China property market to keep cooling into H1 2022 on tight curbs: poll

The property sector, a key driver of growth in the world’s second-largest economy, has slowed sharply in recent months. BEIJING (REUTERS) – China’s property downturn is expected to continue into ... Read more »

FSS chief meets with asset management leaders

Financial Supervisory Service (FSS) Governor Jeong Eun-bo, fifth from right, stands next to CEOs of local asset management companies who participated in the meeting held at Kensington Hotel in Seoul’s ... Read more »

Dollar rises to 74.75 rubles

The euro increased by 47 kopecks and reached 84.15 rubles Read more »

Indian companies raise $1.34 billion from foreign markets in October; down 34% from last year, says RBI

Indian companies raised nearly $1.34 billion from foreign markets in October this year, down 34 percent from the year-ago period, Reserve Bank of India (RBI) data showed on December 1. ... Read more »

OPEC+ ministers will assess oil output plan for January amid new coronavirus variant

So far, oil exporters, which account for around 40% of world oil output, have been recovering oil production at an equal pace since August Read more »

(3rd LD) Inflation growth hits 10-year high in Nov. amid rising oil prices

(ATTN: ADDS more details in paras 21-24; REWRITES lead)By Kim Soo-yeon SEOUL, Dec. 2 (Yonhap) — South Korea’s consumer prices rose at the fastest pace in nearly 10 years in ... Read more »

South Korea inflation accelerates to decade-high in November

Consumer prices in South Korea rose 3.7 per cent in November from a year earlier, exceeding all economists estimates. SEUOL (BLOOMBERG) – South Korea’s inflation accelerated to the fastest pace ... Read more »

(LEAD) S. Korea's Q3 economic growth unchanged at 0.3 pct: BOK

(ATTN: UPDATES with BOK official’s briefing in last 8 paras; ADDS photos)By Koh Byung-joon SEOUL, Dec. 2 (Yonhap) — South Korea’s economy grew at the same pace as earlier forecast ... Read more »

Opec+ faces output decision as Omicron puts market in disarray

Oil futures sank further to US$65 a barrel in New York on Dec 1, 2021. NEW YORK (BLOOMBERG) – Opec and its allies headed into a second day of talks ... Read more »

[Contribution] What can we expect in post-pandemic Korea?

Alicia Garcia Herrero By Alicia Garcia Herrero After a long fight against the COVID-19 pandemic, Korea has started to open up recently by making international travel possible albeit still difficult. ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic