Last Year’s Tax Burden Per Person Exceeded Three Million Won

Despite the severe recession, it has been reported that an average Korean citizen paid over three million won in taxes last year. According to the Ministry of Finance and Economy yesterday, the tax burden per capita increased 7.7 percent from 2,844,000 won in 2003 to 3,064,000 won last year, exceeding three million won for the first time.

Subtracting local taxes from the sum, national taxes amount to 2,393,000 won, showing an increase of 9.7 percent from 2,182,000 won of 2003. Compared to that of 1995 (1,599,000 won), the amount of tax per person last year almost doubled in eight years, hiking 91.6 percent.

The tax burdens per person for each year are as follows: 1,809,000 won in 1996, 1,922,000 won in 1997, 1,835,000 won in 1998, 2,022,000 won in 1999, 2,415,000 won in 2000, and 2,587,000 won in 2001. It is revealed that personal tax decreased shortly after the financial crisis in 1997-98 and rebounded again since 1999. Consequently, the weight of tax in the GDP rose 0.7 percent from 19.8 percent to 20.5 percent last year.

The reason for the increased tax burden is construed by the fact that 49 trillion won of public fund’s loss, which had made since financial crisis, all went to public, and that expenditure on education, defense, and welfare increased.

Ji-Wan Cha cha@donga.com