[Asia Economy Yeongnam Reporting Headquarters, Reporter Song Jong-gu] Changwon Special City in Gyeongnam announced on the 9th that it collected a record-high local tax of 722.5 billion KRW (provincial tax 304.2 billion KRW, city tax 411.4 billion KRW) in the first half of the year.
This is the highest amount ever recorded for the same period, representing an increase of 55.4 billion KRW, or 8.3%, compared to the previous year.
By major tax items, acquisition tax (vehicles) and automobile tax (excluding mileage-based) have increased every year since 2018 despite a decrease in sales due to the vehicle semiconductor supply issue, thanks to efforts to attract leased vehicles, achieving record highs of 102.9 billion KRW and 80 billion KRW respectively in the first half of the year.
Additionally, with the rapid and strong economic recovery in industries such as automobiles, steel, and metals, corporate operating profits improved, resulting in local income tax (corporate income) reaching 107.4 billion KRW, an increase of 31.5 billion KRW or 41.5% compared to the previous year.
Furthermore, active tax collection efforts, including discovering hidden tax sources through regular and planned local tax audits and the establishment of a new department for collecting overdue non-tax revenues, also played a significant role in the increase in tax revenue.
Jo Young-wan, head of the Taxation Division, stated, “Although collection conditions are unfavorable due to factors such as an expected decrease in tax revenue from corporate taxes caused by the increased fuel tax reduction in the second half of this year and next year, interest rate hikes, and real estate market contraction, we will continue to carry out thorough collection activities by developing special policies for each tax item and implementing proactive collection measures.”
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