From March, Recommendations to the Prime Minister's Office, Ministry of Economy and Finance, Ministry of the Interior and Safety, and National Assembly Bear Fruit... Request for Property Tax Reduction for Elderly Single-Homeowners
[Asia Economy Reporter Park Jong-il] Jung Soon-gyun, Mayor of Gangnam District, expressed his welcome on August 31 regarding the passage of the National Assembly's amendment to the Comprehensive Real Estate Tax Act, stating, "Raising the tax base for the comprehensive real estate tax from 900 million KRW to 1.1 billion KRW is a reasonable decision considering the reality of the domestic real estate market."
With the tax base for the comprehensive real estate tax raised from 900 million KRW to 1.1 billion KRW, the number of houses subject to the comprehensive real estate tax in the region decreased by 1,856 units, from 98,376 to 87,520.
Mayor Jung proposed to the related ministries, the Ministry of Strategy and Finance and the Ministry of the Interior and Safety, in March this year to raise the tax base for the comprehensive real estate tax, which had been maintained for 13 years, to 1.2 billion KRW in order to alleviate complaints about real estate holding taxes caused by the sharp rise in official housing prices.
He also requested a property tax reduction for elderly single-homeowners with low income such as pensioners, and an increase in the special property tax rate threshold to 900 million KRW. In May, he sent a letter urging the amendment to the Prime Minister and lawmakers from both ruling and opposition parties.
Mayor Jung Soon-gyun emphasized, "Real estate policy is an issue that must be examined carefully from various angles," adding, "As official prices nationwide, not only in Gangnam District, have continuously risen, the burden on homeowners has increased. Since the tax burden on single-home households has grown, institutional improvements to alleviate this are necessary."
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