President Park Geun-hye has ordered a complete review of the proposed tax code revision amid rising criticism that the changes would increase the burden on the middle and lower income groups.

“Thinning the already light wallets of the common people and the middle class is misaligned with the direction of the government’s economic policy,” Park said at the meeting with presidential secretaries.

Just hours after President Park’s remarks, the finance minister said that the government will start from fresh with the revision.

“The government will review the tax code from scratch in a way that it does not increase the tax burden on ordinary and middle-class people,” Finance Minister Hyun Oh-seok said during a press briefing held in the evening.

“The government will also push to expand tax spending and other practical support in education, medical service and child care for those people,” the minister said.

Park’s decision was welcomed by the ruling Saenuri Party, which appeared to have been put in a spot by the proposed tax code revision.

In a meeting with economic policymakers including the finance minister, Saenuri Party chairman Rep. Hwang Woo-yea referred to Park’s decision as the “right thing” to say, adding that his tax-related proposals needed to be discussed in depth at the National Assembly.

Until now, the ruling party’s leaders had commented sparingly on the need to review the plans, with floor leader Rep. Choi Kyung-hwan focusing more on the positive aspects of the proposal at a recent supreme council meeting.

The ruling party, however, did not fail to capitalize on the opportunity presented by Park’s comments to attack the main opposition Democratic Party.

Despite the president ordering a complete review of the proposal, the DP went ahead with its plans to launch a committee against the “tax bomb” and began a campaign to collect signatures to support its cause.

“If the DP continues to use it as a tool for political wrangling with talks of tax-bombing, the public will not forgive,” Saenuri Party floor spokesman Rep. Kim Tae-heum said.

“Collecting signatures is something non-governmental organizations outside the system do. The DP should stop wandering about in this heat like a lost child, and the right thing to do is for the ruling and opposition parties to cooperate in resolving current issues.”

The DP also used the development as an opening to attack the government and the ruling party.

Saying that Park’s decision was “surrendering to the angered public,” DP spokesman Rep. Kim Kwan-young called on the president to make a public apology.

“The president should first apologize for creating serious disorder. She knew everything about the tax revision. When changing (her position) as if nothing has happened, the rational thing to do is to apologize,” Kim said at a press briefing.

Kim went on to say that the fact that the revision was retracted only a few days after it was proposed showed the incompetence of the ruling party, government and the presidential office.

Kim also called on the government and the ruling party to reduce tax exemptions for high income groups and large companies in reviewing the tax code revision plans. 

By Choi He-suk
(cheesuk@heraldcorp.com)