[THE IBVESTOR] Prime Minister Hwang Kyo-ahn said on July 4 that the government will avoid tax hikes that may burden the people and businesses, amid calls by the opposition parties to raise corporate taxes.

“Increasing taxes will emerge as a burden for the people and should be the last thing the government should consider,” Hwang said during his parliamentary interpellation session. He stressed that Seoul has no plans to raise corporate and income tax for the time being.

“Rather than increasing taxes, we will seek to expand the tax revenue base reducing tax waivers,” Hwang added. “We will make efforts to lower the burden on local companies by avoiding unnecessary tax audits.”

South Korea’s ruling and opposition parties have been colliding over the expansion of corporate tax, amid the Minjoo Party of Korea’s push to slap more taxes on conglomerates.

The ruling Saenuri Party, however, claims that an increase in tax will only burden South Korea’s economy, especially as Britain’s exit from the European Union continues to fuel global market uncertainties.

Minjoo, however, claimed that it is the government’s role to collect more taxes from companies and share them with economically vulnerable segments of society.

(theinvestor@heraldcorp.com)