S. Korea's 2009 tax revenue declines amid slump

SEOUL, Feb. 10 (Yonhap) -- South Korea's tax revenue declined 1.7 percent in 2009
from the previous year as an economic slowdown dented income and corporate
earnings, the finance ministry said Wednesday.

Total state tax revenue reached 164.5 trillion won (US$141.8 billion) last year,
compared with 167.3 trillion won collected a year earlier, the Ministry of
Strategy and Finance said in a press release.
Compared with its initial budget forecast, however, the government earned 500
billion won more in tax revenues, the ministry noted.
The on-year decline stemmed mostly from a shrinkage in earnings from income and
corporate taxes due to the economic slowdown.
The government collected 2 trillion won less in income tax last year amid a
sluggish labor market and a reduction in tax rates. Revenue from corporate taxes
also declined by 3.9 trillion won compared with a year earlier, according to the
ministry.
The government, however, collected 3.2 trillion won more in value-added taxes
partly due to a rebound in domestic consumption during the second half of last
year. Stock transaction tax revenue also increased by 700 billion won over the
cited period, the ministry said.
Meanwhile, the government's 2009 total revenue including taxes and other earnings
amounted to 261.3 trillion won, while its total expenditures came to 252.2
trillion won. Of the surplus of about 9 trillion won, 2.7 trillion won will be
handed over for this year, the ministry said.
kokobj@yna.co.kr
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