ID :
30484
Sun, 11/16/2008 - 06:51
Auther :
Shortlink :
https://www.oananews.org//node/30484
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Gov't, ruling party seek to reduce property tax on single-house holders
SEOUL, Nov. 15 (Yonhap) -- The government and the ruling party are seeking to reduce the ownership tax burden on long-term holders of expensive houses in afollow-up measure to the recent court decision on a controversial property tax system, officials said Saturday.
On Thursday, the Constitutional Court ruled that core parts of the three-year-old
comprehensive real-estate holding tax is unconstitutional, a decision that calls
for massive tax returns and a law revision.
Under the current law, additional holding taxes are levied on a household with a
combined asset of over 600 million won (US$42,857). Earlier, the government
submitted a bill aimed at lifting the asset ceiling to 900 million won.
"We are considering a measure to reduce the tax burden if a holding period
exceeds a certain figure," an official at the ruling Grand National Party said.
"The most plausible option is to set the owning period at 3 years." He didn't
elaborate further.
The ownership tax was first introduced in 2005 by the liberal Roh Moo-hyun
government to stem excessive property price hikes by slapping heavy taxes on
multiple house holders. The move sparked an outcry from wealthy people who
claimed it constituted "double" and "retaliatory" taxation.
The tax was also levied on single-house owners no matter how long they hold the
properties. As real estate prices soared in recent years, some people were forced
to pay heavy taxes despite lacking income sources.
President Lee Myung-bak, who took office in February, has said that his
government will ease tax burdens as part of efforts to boost domestic consumption
and corporate investment at a time when the economy is showing signs of a
slowdown.
On Friday, the Finance Ministry estimated that it will return about 600 billion
won collected until 2007 as the Constitutional Court ruled major parts of the
holding tax unconstitutional. A total of 280,000 people will be eligible for the
tax returns, it added.
Currently, the GNP holds 172 seats in the 299-seat National Assembly. Opposition
parties object easing property taxes saying that the move is only in the
interests of the wealthy.
kokobj@yna.co.kr
(END)
On Thursday, the Constitutional Court ruled that core parts of the three-year-old
comprehensive real-estate holding tax is unconstitutional, a decision that calls
for massive tax returns and a law revision.
Under the current law, additional holding taxes are levied on a household with a
combined asset of over 600 million won (US$42,857). Earlier, the government
submitted a bill aimed at lifting the asset ceiling to 900 million won.
"We are considering a measure to reduce the tax burden if a holding period
exceeds a certain figure," an official at the ruling Grand National Party said.
"The most plausible option is to set the owning period at 3 years." He didn't
elaborate further.
The ownership tax was first introduced in 2005 by the liberal Roh Moo-hyun
government to stem excessive property price hikes by slapping heavy taxes on
multiple house holders. The move sparked an outcry from wealthy people who
claimed it constituted "double" and "retaliatory" taxation.
The tax was also levied on single-house owners no matter how long they hold the
properties. As real estate prices soared in recent years, some people were forced
to pay heavy taxes despite lacking income sources.
President Lee Myung-bak, who took office in February, has said that his
government will ease tax burdens as part of efforts to boost domestic consumption
and corporate investment at a time when the economy is showing signs of a
slowdown.
On Friday, the Finance Ministry estimated that it will return about 600 billion
won collected until 2007 as the Constitutional Court ruled major parts of the
holding tax unconstitutional. A total of 280,000 people will be eligible for the
tax returns, it added.
Currently, the GNP holds 172 seats in the 299-seat National Assembly. Opposition
parties object easing property taxes saying that the move is only in the
interests of the wealthy.
kokobj@yna.co.kr
(END)
