Tax revenue down 34 tln won through April

tax revenue-tally

Tax revenue down 34 tln won through April

By Kang Yoon-seung

SEJONG, May 31 (Yonhap) -- South Korea's tax revenue fell 33.9 trillion won (US$25.7 billion) in the first four months of the year compared with a year earlier, data showed Wednesday, as an economic slump weighed down on business activities.

Tax revenue amounted to 134 trillion won during the January-April period, down from 167.9 trillion won tallied a year earlier, according to the Ministry of Economy and Finance.

Last month, the government collected 46.9 trillion won in taxes, down 9.9 trillion won from the previous year, marking the sharpest on-year drop for any April.

The ministry attributed the decline in tax revenue to the slump in the property market, which resulted in a decrease in capital gains tax revenue.

Income tax collected in April came to 7.5 trillion won, down 1.8 trillion won from a year earlier, and corporate income in the month slid 9 trillion won to reach 11.3 trillion won, the data showed.

The securities transaction tax, which has been losing ground amid the slump in the stock market, remained unchanged from the previous year at 600 billion won following a recent recovery.

On the back of a recovery in consumption amid eased COVID-19 restrictions, however, the government collected 19.4 trillion won in value-added tax in April, up 1.8 trillion won from the previous year.

Despite the falling tax revenue, Finance Minister Choo Kyung-ho has reiterated that South Korea is not considering an extra budget, noting the government will instead seek to utilize tax income carried over from the previous year as well as other reserve funds.

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