Yejungcheo: "Government's Excess Tax Revenue Forecast Excessive... 5.5 Trillion Won Less Collected Than Expected"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho is holding a joint briefing with related ministers on the '2022 2nd Supplementary Budget' at the Government Seoul Office in Jongno-gu, Seoul, on the 12th. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kang Nahum] On the 16th, the National Assembly Budget Office analyzed that the Ministry of Economy and Finance's projection of this year's excess tax revenue of 53.3 trillion won is excessive. The Budget Office forecasted that it would amount to 47.8 trillion won, which is 5.5 trillion won less than the government's original estimate.

In the report titled 'Analysis of the 2nd Supplementary Budget for 2022' published on the same day, the Budget Office projected that the national tax revenue for 2022 will increase by 47.1 trillion won (13.7%) compared to the previous year's actual results, reaching 391.2 trillion won.

Accordingly, the Budget Office explained that this year's excess tax revenue is expected to be 47.8 trillion won, calculated by subtracting the national tax revenue from the original budget (343.4 trillion won).

The Budget Office analyzed, "Considering the downward risks to the economy and increasing uncertainty due to worsening external conditions such as the Russia-Ukraine war, the resurgence of COVID-19 in China and lockdowns in major cities, and rising international interest rates, the possibility of a slowdown in tax revenue growth compared to expectations cannot be ruled out."

Earlier, the government estimated total national tax revenue for this year at 396.6 trillion won. Among this, income tax is 127.8 trillion won, corporate tax is 104.1 trillion won, and value-added tax is 79.3 trillion won. This estimate is based on an excess collection of 61.3 trillion won compared to the 2021 original budget, an increase in corporate tax revenue due to favorable corporate operating profits, and rising prices.