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Property and Aggregate Land Taxes to Rise

Posted April. 16, 2003 21:50,   


The tax base for property and aggregate land taxes will rise 20% over the next five years for those who possess real estate including houses. The actual rate of the tax hike is steeper than that of the tax base, because property tax rates increase along with the tax base.

A presidential organization for correcting the gap between the rich and the poor as well as discrimination briefed President Roh on primary measures for correcting the gap and discrimination at a workshop of seven organizations implementing national policies in Gwacheon, Gyeonggy Province, on April 16. Lee Jeong Woo, Chief Secretary to the President for National Policy, is head of the organization.

Regarding property taxes, those who own apartments over 500 million won at market price usually pay a tax base of 150 million won, but will have to also pay an increased tax base of 250 million won in the next five years.

The property tax rate ranges from 0.3% to 7% according to the tax base. Currently, property taxpayers number 12 million people and aggregate land taxpayers number over 14 million people.

The organization has also decided to cut acquisition and registration taxes.

Moreover, the organization plans to activate debit cards in order to regain tax sources from those who are self-employed having high incomes. It will also investigate and impose taxes on 5.83 million self-employed households with incomes that have not yet been estimated.

The organization to correct discrimination and the gap between the rich and the poor is set to push for a plan that will combine the imposition and collection of social insurance so that those with high real incomes pay more for pension and health insurance.

The government organization will enact a housing law within the year to improve the residential environment for those in the lower income bracket. In addition, it will formulate various policies to reduce those in lowest income bracket, by providing them with rental apartments, increasing home loans for rental deposits, and supporting them to improve their home environments. It will also enact a special law to supply rental apartments as scheduled.

Furthermore, in order to help the poor increase their standard of living, the organization will allow a larger number of people to participate in self-support programs, by amending the law that makes guarantees for basic necessities. It also will provide more support to local governments to help.

For those who participate in the self-support program, it will deduct earned-income tax and provide allowances for vocational training, money for employment, and funds for starting new businesses. In the longer term, if those with lower incomes work more actively, they will be able to receive additional funds through Earned-Income Tax Credit (EITC).

The organization will also establish a promotion committee for the discrimination prohibition law along with the National Human Rights Commission for discrimination against women, the disabled, the uneducated, as well as part-time and foreign workers.

Young-Hae Choi Kwang-Am Cheon yhchoi65@donga.com iam@donga.com