South Korea's tax revenue declines in first 9 months of 2024
Date
11/14/2024 2:59:22 AM
(MENAFN) South Korea's tax revenue declined in the first nine months of 2024, primarily due to increased corporate tax benefits, according to government data released on Thursday. The total tax revenue for the period amounted to 255.3 trillion won (approximately 181.4 billion U.S. dollars), which was down by 11.3 trillion won (8 billion dollars) compared to the same period last year. The drop in revenue was mainly driven by a significant 17.4 trillion won (12.4 billion dollars) decrease in corporate tax collections, a result of the higher tax benefits granted to companies.
Despite this overall decline, other tax categories saw growth. Income tax revenue increased by 400 billion won (284.2 million dollars), and value-added tax (VAT) revenue expanded by 5.7 trillion won (4.1 billion dollars), helping to offset the reduction in corporate taxes. As a result, total government revenue, including both tax and non-tax sources, rose by 3.1 trillion won (2.2 billion dollars), reaching a total of 439.4 trillion won (312.2 billion dollars) during the nine-month period.
On the expenditure side, the South Korean government’s total spending increased by 24.8 trillion won (17.6 billion dollars), bringing total expenditure to 492.3 trillion won (349.8 billion dollars). This led to a managed fiscal balance deficit of 91.5 trillion won (65 billion dollars), which excludes social security fund expenditures, highlighting a widening fiscal gap.
South Korea’s central government debt also rose, standing at 1,148.6 trillion won (816.2 billion dollars) at the end of September. This represents a decrease of 18.7 trillion won (13.3 billion dollars) from the previous month, reflecting efforts to manage debt levels, though the overall debt remains substantial.
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