[Weekly Outlook] Government to Announce Tax Reform Plan Emphasizing 'Private-Led Growth' on the 21st... Focus on Comprehensive Real Estate Tax and Income Tax Revisions

[Asia Economy Sejong=Reporter Son Seon-hee] The government is expected to push for reforms in comprehensive real estate tax and income tax to reduce the tax burden on the middle class and low-income earners.

The government plans to announce the '2022 Tax Law Amendment' on the 21st. The tax law amendment outlines the direction of tax laws to be newly applied from next year and signals related legislative changes. Notably, this tax law amendment is the first since the inauguration of the Yoon Seok-yeol administration, and it is expected to present tax policies reflecting the new government's philosophy of 'private sector-led growth.'

The government has already announced plans to lower the corporate tax top rate from the existing 25% to 22%. Along with this, a relaxation of real estate holding taxes, which sharply increased during the previous Moon Jae-in administration, has also been forecasted.

Additionally, there is a strong possibility of revising the comprehensive income tax brackets, which have remained unchanged for 15 years since 2008.

Meanwhile, the government will release the July Economic Trends (Green Book) on the 20th, containing an assessment of the recent economic situation. Since the government expressed concerns about an economic slowdown for the first time last month, this month's evaluation is also highly anticipated.

The Bank of Korea will disclose the 'June Producer Price Index' on the 22nd. The Producer Price Index has been rising for five consecutive months this year, with a 9.2% increase compared to the same month last year in May.