Jin Says Tax Cuts May Bring Trouble

Deputy Prime Minister Jin Nyum said Wednesday that tax cuts designed to stimulate the economy would not be appropriate. "An across-the-board cut in tax rates may stimulate the economy, which may in turn increase tax revenue," Mr. Jin said, "but we believe it would be difficult and impractical to apply that measure."

The government would improve the efficiency of tax assessment and administration, and "the resulting increase in tax burden must be borne (by the taxpayers.)"

Mr. Jin was also pessimistic about the prospect of a value added tax cut. "A value added tax reduction to boost the economy would not be appropriate because it can distort the tax system," he said.

Mr. Jin, who is also the Ministry of Finance and Economy, said the government will not consider a supplementary budget before June.

by Lee Young-lyoul