ID :
31526
Fri, 11/21/2008 - 22:22
Auther :
Shortlink :
https://www.oananews.org//node/31526
The shortlink copeid
Ruling party moves cautiously in changing controversial real estate tax
SEOUL, Nov. 21 (Yonhap) -- South Korea's ruling party decided Friday to maintain the baseline on which the country's progressive tax is levied on owners of high-end homes, turning down a proposal to drastically overhaul the legacy of the former liberal administration.
The decision by the conservative Grand National Party (GNP) comes amid internal
contention that the party risks being portrayed as preoccupied with benefiting
the rich if it maintains its hard-line stance on the so-called comprehensive real
estate tax.
It also allows for further negotiations on minor details with opposition parties,
which continue to square off on issues such as when to ratify a free trade
agreement with the United States.
The tax, introduced in 2005 under the Roh Moo-hyun administration with the aim of
improving social income distribution and fighting real estate speculation, has
been the subject of intense controversy.
After years of complaints by groups of South Koreans who own high-end homes
mostly in affluent southern Seoul, the Constitutional Court called last week for
the dramatic revision of the law.
The top tribunal said the tax should no longer be levied based on the value of a
home owned by a household, but by an individual. The ruling substantially reduced
the number of those subject to the tax because a single home can be legally
broken down into smaller individual holdings, eventually lowering the value of a
home per individual and allowing such persons to stay clear of payments.
Following the ruling, the government also proposed raising the bar at which the
tax is imposed from 600 million won (US$400,000) to 900 million per individual,
allowing greater leeway.
But as polls increasingly suggested a large number of South Koreans opposed
changes, the GNP sensed strong political objections and said Friday it would
stick to 600 million won per individual as the baseline from which to impose the
tax.
The party also said it will seek to introduce a limit on the period during which
a homeowner is subject to the tax, suggesting five to 10 years if the homeowner
stays in a single residence.
The GNP controls an absolute majority of 172 seats in the 299-member National
Assembly, while the main opposition Democratic Party holds 83.
The decision by the conservative Grand National Party (GNP) comes amid internal
contention that the party risks being portrayed as preoccupied with benefiting
the rich if it maintains its hard-line stance on the so-called comprehensive real
estate tax.
It also allows for further negotiations on minor details with opposition parties,
which continue to square off on issues such as when to ratify a free trade
agreement with the United States.
The tax, introduced in 2005 under the Roh Moo-hyun administration with the aim of
improving social income distribution and fighting real estate speculation, has
been the subject of intense controversy.
After years of complaints by groups of South Koreans who own high-end homes
mostly in affluent southern Seoul, the Constitutional Court called last week for
the dramatic revision of the law.
The top tribunal said the tax should no longer be levied based on the value of a
home owned by a household, but by an individual. The ruling substantially reduced
the number of those subject to the tax because a single home can be legally
broken down into smaller individual holdings, eventually lowering the value of a
home per individual and allowing such persons to stay clear of payments.
Following the ruling, the government also proposed raising the bar at which the
tax is imposed from 600 million won (US$400,000) to 900 million per individual,
allowing greater leeway.
But as polls increasingly suggested a large number of South Koreans opposed
changes, the GNP sensed strong political objections and said Friday it would
stick to 600 million won per individual as the baseline from which to impose the
tax.
The party also said it will seek to introduce a limit on the period during which
a homeowner is subject to the tax, suggesting five to 10 years if the homeowner
stays in a single residence.
The GNP controls an absolute majority of 172 seats in the 299-member National
Assembly, while the main opposition Democratic Party holds 83.
