President's Office may abolish comprehensive real estate tax amid opposition push

It was reported on Friday that the President's Office is reviewing comprehensive tax reforms, including the abolition of the comprehensive real estate tax. This move follows the Democratic Party's proposal to ease the tax, sparking more comprehensive discussions. Both the ruling People Power Party and the President's Office have indicated a willingness to pursue the tax's abolition. Discussions on tax reforms, including the comprehensive real estate tax, are expected to gain momentum in the 22nd National Assembly.

A senior official from the President's Office told the Dong-A Ilbo, "We will thoroughly discuss the overall tax system, including the abolition of the comprehensive real estate tax. Abolishing this tax was a campaign promise by President Yoon Suk Yeol, so we expect to accelerate its implementation."

The President's Office considers the comprehensive real estate tax to be fundamentally problematic. It argues that discussions should move beyond merely easing the tax, as suggested by some within the Democratic Party, to considering its complete abolition. A senior official noted, "The comprehensive real estate tax was created as a punitive measure against rising property prices, but it places an excessive burden on the middle class and has elements of double taxation."

Previously, Democratic Party Floor Leader Park Chan-dae hinted at abolishing the comprehensive real estate tax for single homeowners in a media interview. Similarly, Democratic Party lawmaker Ko Min-jung advocated for a redesign of the tax system. Party leader Lee Jae-myung also acknowledged the need for such opinions, signaling a shift in the party's stance.

The President's Office's decision to seriously consider abolishing the comprehensive real estate tax appears to be aimed at reclaiming the initiative in this debate. The office is also reviewing inheritance tax reforms. A senior official stated, "We are exploring various options, such as taxing the gains from disposing of inherited assets rather than taxing the inheritance itself."


Joo-Young Jeon aimhigh@donga.com