Tax revenue forecast to grow 3.9 pct in 2010

SEOUL, Sept. 23 (Yonhap) -- South Korea's tax revenue is expected to grow 3.9
percent on-year in 2010 thanks to increased income and value-added taxes
collected amid growing signs of an economic recovery, the government said
Wednesday.
According to the draft by the Ministry of Strategy and Finance, the government
expects to collect 171.1 trillion won (US$143 billion) in tax revenue next year,
compared with the 164.6 trillion won forecast for this year.
Under the 2010 draft budget plan to be submitted to the National Assembly on Oct.
1, income tax revenue is expected to grow 9.0 percent to 37.0 trillion won, while
value-added tax is predicted to expand 5.0 percent to 48.7 trillion won.
Income tax includes taxes levied on wages, comprehensive earnings and profits
generated by property transfers.
"State earnings are expected to post gains as wages go up and more capital gains
tax is collected due to an increase in real estate transactions and purchase of
goods," a ministry official said.
The ministry, however, predicted that corporate tax income could drop 2 percent
on-year to 35.4 trillion won as the government cuts back on taxes levied on
businesses amid reduced corporate earnings caused by sluggish economic
conditions.
The increase, meanwhile, is expected raise the tax burden by roughly 190,000 won
per person in the new year.
In 2010, an average South Korean is expected to pay 4.53 million won in taxes
from 4.34 million won this year and 4.38 million won tallied for 2008.
The overall tax burden ratio, however, is expected to dip 0.4 percentage point to
20.1 percent, from 20.5 percent in 2009.
yonngong@yna.co.kr
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