S. Korea's tax revenue growth slows in 2008

SEOUL, Nov. 8 (Yonhap) -- South Korea's national tax revenue grew at the lowest
rate in recent years in 2008 as the economy plunged into a slump in the wake of
the global financial crisis, the tax office said Sunday.

According to the Korea Customs Service, national tax receipts totaled 157.5
trillion won (US$134.9 billion) last year, up a mere 2.9 percent from the
previous year.
It was the lowest annual growth rate in four years. Comparable growth figures
were 17.5 percent in 2007, 8.2 percent in 2006 and 9.3 percent in 2005.
Reflecting the economic downturn, liquor tax receipts surged 25.1 percent, while
state revenues from taxes on securities transactions and purchases of jewelry and
other high-priced goods fell 12.8 percent and 19.6 percent each, the office said.
Consumption of liquor tends to increase during economic slumps in South Korea,
while consumers usually tighten their purse strings and abstain from buying
luxury items.
Hit by the global financial rout, the South Korean economy, Asia's
fourth-largest, grew 2.2 percent on-year in 2008, the slowest growth since 1998.
In 2007, the economy expanded 5.1 percent from a year earlier.
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