Tax revenue up in January on year as capital gains rise

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Tax revenue up in January on year as capital gains rise

Tax revenue rose 2.4 trillion won ($2.1 billion) in January from a year earlier due largely to an increase in the collection of capital gains taxes, the finance ministry said Tuesday.
The country collected 38.8 trillion won in taxes in January, compared with 36.5 trillion won the previous year, according to the Ministry of Economy and Finance.
The rise in tax revenue was mainly attributable to an increase in capital gains tax income from housing transactions and fund investments.
In January, the government's total revenue, including tax income, amounted to 57.3 trillion won, also up 6.1 trillion won from a year earlier.
The country's total expenditures grew 2.9 trillion won on-year to 53.9 trillion won due mainly to increased spending on pandemic relief projects.
Accordingly, the country logged a fiscal surplus of 3.4 trillion won in January, the data show.
But the managed fiscal balance, another key gauge of fiscal soundness calculated on a stricter term, logged a shortfall of 1.8 trillion won in January.
Korea is widely expected to post a fiscal deficit this year as it seeks to maintain its expansionary fiscal policy to tackle the Covid-19 pandemic.
The government proposed an extra budget of 15 trillion won last week to finance the 19.5 trillion-won aid package aimed at supporting smaller merchants and vulnerable groups hit hard by the pandemic.
With the latest extra budget, the country's debt is expected to reach 965.9 trillion won this year, according to the finance ministry.
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