One Person Paid a Tax of 2.57 Million Won Last Year

The ratio of total tax to gross domestic product (GDP) was estimated to be historical high 22.3 percent or 2.57 million won per a person.

An official of the Ministry of Finance and Economy (MOFE) on the 21st announced, “total amount of the tax that the government collected last year was tentatively estimated to be total 121 trillion and 792.8 billion won or 95 trillion and 792.8 billion won for national tax and 26 trillion won for local tax. ” That amount is 7.3 percent more than 113 trillion and 535.3 billion won in 2000.

The amount of taxes per a person was 1.92 million won in 1997, a little less in 1998, and over 2 million won in 1999, and finally soared to 2.57 million won last year.

The government failed to keep the ratio to GDP under 22 percent, as the ratio of total taxes to GDP of 545 trillion and 13.3 billion won last year was 22.3 percent. That ratio is higher than that of Japan 17.1 percent (2000), but lower than average ratio of Organization for Economic Cooperation and Development (OECD) countries.

An official of MOFE said, “the ratio of taxes to GDP rose a little more than expected because the growth rate of economy last year was rather low, and refund of taxes was decreased due to inactivity of export trade. ”

Rae-Jeong Park ecopark@donga.com