Gov’t proposes higher minimum corporate tax

The government plans to raise the minimum corporate tax rate of large companies to boost tax revenue, a lawmaker of the ruling Saenuri Party said yesterday.

The Ministry of Strategy and Finance seeks to hike the tax rate to 15 percent from the current 14 percent, said Na Seong-lin, a deputy policy maker of the party, after consultations between party officials and the ministry.

The Finance Ministry also plans to impose higher taxes on capital and financial income, said Na.

The draft tax revisions, which need the National Assembly’s endorsement, will increase government tax revenues by 1.8 trillion won ($1.6 billion), said Na.

The move is in line with campaign pledges the ruling party announced ahead of the parliamentary elections in April in what appeared an attempt to garner support from voters.

Officials of the Federation of Korean Industries, which represents the interests of large conglomerates, were not immediately available for comment on the ruling party’s move.
The proposed tax revisions came as lawmakers call for “economic democracy” in a country where family-controlled conglomerates wield significant clout often at the expense of smaller companies. Yonhap