[Asia Economy Reporter Oh Ju-yeon] The Democratic Party of Korea and the government have decided to review the plan to apply this year's publicly announced property prices when calculating next year's housing holding tax. They are also considering a temporary deferral of comprehensive real estate tax (종부세) payments for elderly homeowners with one house.
Song Young-gil, leader of the Democratic Party of Korea, is attending a party-government consultation on improving the public announcement price system held at the National Assembly on the 20th, and is talking with floor leader Yoon Ho-jung before the meeting begins. Photo by Yoon Dong-ju doso7@
On the 20th, the party and government held a consultation on improving the publicly announced property price system and discussed these matters before announcing a broad tax relief plan. Park Wan-joo, the Policy Committee Chair of the Democratic Party, said in a briefing after the consultation, "We urged the government to respond carefully so that the burden on actual homeowners with one house does not increase due to the 2022 changes in publicly announced property prices," adding, "We are reviewing the application of this year's announced property prices for next year as well." He also mentioned, "If this year's announced prices are used, the term 'freeze' on holding tax can also be applied."
He also requested a detailed review of the deferral method for 종부세 payments. Park said, "Among the 130,000 households with one house, we requested a review of payment deferral for 60,000 elderly households," and added, "The party and government will explore all possible methods to ensure that the tax burden does not increase for actual homeowners with one house, and a concrete plan is expected to be presented around March next year."
However, he clarified that this does not overturn the plan to realize the actual value of publicly announced property prices. Park explained, "We will steadily implement the real estate publicly announced property price realization plan established last year to continuously enhance the appropriateness of the announced prices. We will not alter the realization rate roadmap set through 2030." The focus is on temporarily reducing the tax burden for homeowners with one house by adjusting the upper limit on holding tax burdens and the criteria for applying publicly announced property prices while maintaining the overall framework. Additionally, they plan to strengthen buffer measures for each system, including property tax, 종부세, and health insurance premiums.
Song Young-gil, the leader of the Democratic Party, also stated in his opening remarks at the party-government consultation, "The reality where the tax burden on the people increases due to the administrative measure of realizing the announced prices needs adjustment," and added, "We will actively promote a comprehensive reform of the publicly announced property price system, as candidate Lee Jae-myung promised, including readjusting the fair market value ratio and expediting the phased introduction of adjustment coefficients."
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