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Government Fails to Reach Conclusion on Transfer Income Tax

Government Fails to Reach Conclusion on Transfer Income Tax

Posted December. 06, 2004 22:38,   


Cheong Wa Dae, the Uri Party, and the Ministry of Finance and Economy failed to reach conclusion on the enforcement time for the heavy taxing of single households with three houses despite going for last-minute arbitration.

As a result, confusion is rising among people trying to sell or buy houses, and a situation has been reached where the president has to decide on the enforcement time himself.

On December 6, after a high level conference of the Uri party, government, and the Ministry of Finance and Economy had ended, the Uri Party’s chief policymaker Hong Jae-hyung said relating to the heavy taxing on single households having three houses, “There are dissenting opinions within the government and the point of view was not straightened out.” He added, “We decided to continue after the government brought in a united point of view.” As a result, the confusion surrounding the enforcement time of heavily taxing people with a transfer income tax for single households having three houses seems to be set to continue for a while.

The heavy transfer tax, which was scheduled to be enforced starting from January 2005, created controversy when deputy Prime Minister and the Minister of Finance and Economy Lee Hun-jae insisted on “postponing the enforcement time” and the chairman of the Presidential Advisory Policy Planning Committee, Lee Jeong-woo, objected by saying that “enforcement should be done as scheduled.”

A main authority from the Uri party said, “How can we straighten out a united point of view in a situation where Deputy Prime Minister Lee and Committee Chairman Lee are grappling strongly against each other about the time of enforcement?”

Chi-Young Shin Young-Hae Choi higgledy@donga.com yhchoi65@donga.com