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Tax income surges by 20 tln in first seven months

All News 14:51 October 07, 2016

SEJONG, Oct. 7 (Yonhap) -- South Korea's national tax income expanded to a large extent in the first seven months of the year on improved corporate and value added taxes despite a protracted economic slowdown, the tax authorities said Friday.

The National Tax Service (NTS) collected a total of 150 trillion won (US$134.3 billion) in national tax during the January-July period, up by 20.1 trillion won from 129.9 trillion won over the same period last year, according to the NTS report submitted to the National Assembly for a parliamentary audit.

It marked 67.2 percent of the annual target for all of 2016, up by 4.8 percentage points from a year earlier.

"The increase in tax income is driven by an uptick in corporate earnings and private consumption," the NTS said in the report.

Businesses have enjoyed improved profitability throughout the year due to decreased costs stemming from low oil prices, pushing up their corporate tax payments.

Meanwhile, private consumption has also continued its upside mode for nearly a year to post a 3.3 percent on-year gain in the second quarter.

A recent tax code revision to reduce tax exemptions and the NTS' efforts to crackdown on overseas tax dodgers also contributed to the sharp rise in tax revenue.

National Tax Service Commissioner Lim Hwan-soo (L) speaks at a parliamentary audit in Seoul on Oct. 7, 2016. (Yonhap)


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