South Korea's tax revenue increased by 5.5 trillion won ($3.8 billion) in March compared to a year earlier, driven largely by higher corporate tax collection, the finance ministry said Wednesday.
The government collected 32.3 trillion won in taxes last month, compared with 26.9 trillion won in the same month last year, according to the Ministry of Economy and Finance.
The rise was mainly attributed to improved business performance among corporations whose fiscal year ended in December. As a result, corporate tax revenue increased by 5.8 trillion won, along with a rise in corporate interest and dividend income.
However, the execution rate of corporate tax revenue relative to the annual budget target stood at 28.6 percent in March, which is lower than last year's rate of 30 percent and the five-year average of 29.5 percent.
"While corporate tax collection was slightly underwhelming in March, it is not a major concern at this point," Cho Moon-kyun, a finance ministry official, said. "Given the growing domestic and global uncertainties, we need to keep a close watch on the interim tax payments in August."
Meanwhile, value-added tax revenue declined by 800 billion won in March, partly due to an increase in refunds.
Stock transaction tax collection also dropped by 200 billion won due to decreased trading activity.
On the other hand, inheritance and gift tax revenue rose by 200 billion won, as the number of deaths increased, while transportation, energy and environment tax revenue increased by 100 billion won. (Yonhap)
