Tax Revenue Decreased by 11.3 Trillion Won from January to September... Corporate Tax Down by 17.4 Trillion Won

Ministry of Economy and Finance, September National Tax Revenue Status

National tax revenue decreased by 11.3 trillion won compared to the previous year up to September this year. Amid continued sluggish corporate tax revenue due to poor corporate performance last year, securities transaction tax revenue fell by 1 trillion won due to market contraction.

According to the Ministry of Economy and Finance's announcement on the status of national tax revenue in September on the 31st, the cumulative national tax revenue from January to September this year was 255.3 trillion won, a decrease of 11.3 trillion won compared to the same period last year.

The tax revenue progress rate compared to this year's budget (367.3 trillion won) was 69.5%, significantly below the average of the past five years (78.3%). To achieve this year's national tax revenue budget (337.7 trillion won) following the Ministry of Economy and Finance's tax revenue re-estimation last month, about 82.4 trillion won more in taxes must be collected from October to December.

By tax item, corporate tax was 54.5 trillion won, down 17.4 trillion won from a year ago. This is a continued effect of decreased payment performance due to poor corporate earnings since last year.

Yoon Su-hyun, head of the Tax Analysis Division at the Ministry of Economy and Finance, explained the decrease in corporate tax, saying, "The decrease in installment payment performance is due to a 1.9 trillion won reduction in corporate tax interim payment declaration amounts, but payments are being made at an appropriate level corresponding to the decrease in declared amounts."

Income tax (85 trillion won) increased by 400 billion won due to an increase in earned income tax from higher interest income tax caused by high interest rates and an increase in employed persons, but a decrease in comprehensive income tax and capital gains tax.

Value-added tax (60.5 trillion won) also increased by 5.7 trillion won as payment performance rose recently due to increased consumption and decreased refunds. Director Yoon said, "Although there is a downward factor in refund taxes due to increased facility investment by semiconductor companies, the value-added tax revenue performance in October is good, so it is expected to partially offset."

On the other hand, securities transaction tax revenue amounted to only 3.9 trillion won, down 1 trillion won from a year ago. This was influenced by a decline in trading volume as the stock market contracted and a reduction in tax rates. Customs duties (5.1 trillion won) also decreased by 300 billion won due to a decline in import volume.

Tax revenue for the month of September was 23.1 trillion won, down 1.9 trillion won compared to the same month last year. By tax item, corporate tax decreased by 600 billion won due to a reduction in installment tax payments following a decrease in interim payment scale, and value-added tax decreased by 1.4 trillion won due to a decline in import-based value-added tax.

Income tax increased by 500 billion won due to an increase in earned income tax from more employed persons and wage increases. Securities transaction tax and customs duties decreased by 300 billion won and 200 billion won, respectively.