Posted September. 05, 2005 07:06,
According to a survey by the Ministry of Finance and Economy, a family of four bore 15,920,000 won of tax and quasi-tax burden, including taxes and national pension, on average last year.
The survey, published on September 4, shows that a person paid an average of 3,980,000 won during the past year. On the basis of a four-member family, the amount is translated into 15,920,000 won, which amounts to 4.7 months of a city workers average monthly income (3,369,918 won) during the second quarter of this year.
It is expected that the burden will surpass the four million won level this year as the tax burden per person will increase to 3.4 million won.
Since 2,000, the tax and quasi-tax burden has increased by 37.2 percent, higher than the 32.2 percent increase in per capita Gross National Income.
An official of the ministry said tax revenue and social security contributions rose as the economic scale grew, but slowing population growth resulted in a record tax and quasi-tax burden every year.
However, many point out that the burden should be adjusted within the range of an income increase rate considering sluggish domestic spending.
On September 4, Lee Han-gu, the GNP`s policymaker, insisted that this year Koreans could bear the potential burden of 243 trillion won, or per capita burden of 5.03 million won, considering the large national projects that need a huge amount of public spending.
The potential burden consists of taxes, social security contributions, and national debt caused by the fiscal deficit
Lee said that potential per capita burden has increased by 1.47 million won or 41 percent for the past three years and will rise further because of misadministration and the implementation of 600 trillion won projects announced by the Roh administration.