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S. Korea's tax revenue falls W2.2tr on-year through March

By Yonhap

Published : April 30, 2024 - 11:38

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(Herald DB) (Herald DB)

South Korea's tax revenue fell 2.5 percent on-year during the first three months of 2024 due mainly to weak corporate performances, the finance ministry said Tuesday.

The government collected 84.9 trillion won ($61.68 billion) in taxes this year through March, down 2.2 trillion won from a year earlier, according to the Ministry of Economy and Finance.

The decline was due mainly to the fall in corporate taxes collected and income taxes.

The collection of corporate taxes sank 22.8 percent, or 5.5 trillion won, on-year to 18.7 trillion won during the three-month period.

Listed companies in South Korea experienced a double-digit fall in their operating profits last year, and more than 100 companies turned to deficit in a year, according to government data.

The amount of income tax collected went down 2.5 percent on-year to 27.5 trillion won as companies slashed performance-based payments and other incentives for employees.

But the value-added tax collected climbed 22.5 percent on-year to 20.2 trillion won, and the stock exchange tax rose 16.2 percent to 1.4 trillion won during the cited period.

In March alone, the country's total tax revenue slid 6 trillion won from a year earlier to 26.9 trillion won.

The decline raised concerns about a possible yearly tax revenue shortfall.

Last year, the country's total revenue fell 77 trillion won on-year to 497 trillion won, as tax collections dropped due to poor corporate performance and the property market slump.

The ministry has said such a shortfall is unlikely in 2024. (Yonhap)