[THE INVESTOR] The tax burden rate for the corporate community has continuously fallen throughout the two previous and current administrations while that on personal income has risen, a parliamentary report showed on Sept. 8.

Such conclusions were drawn as the opposition camp, who wields the majority in the National Assembly, is pressing for a tax increase. The government has stayed the rate for corporate, income and value-added taxes for next year.



The report, compiled by the National Finance Institute at the request of the parliament’s special committee on budget and accounts, said the corporate tax burden rate under the present Park Geun-hye administration is 18.4 percent, compared with 27.2 percent during the Kim Dae-jung government (1998-2002), 23 percent under the Roh Moo-hyun government (2003-2007), and 20 percent during the Lee Myung-bak administration (2008-2012).

For personal income, the rate rose from 4.7 percent during the Kim Dae-jung government to 5.4 percent under Roh, 6 percent under Lee and 6.9 percent in the current administration.

The results suggest that while the tax burden on the business community has not risen commensurate to its profit increase, it was the reverse for individuals.

“With the corporate tax burden rate less than 20 percent, the assessment is that there is room for an increase. If it reaches near 30 percent, then there can be a review for a reduction,” it said.

(theinvestor@heraldcorp.com)