Local Tax Revenues Reach 25.8 Trillion Won in Q1, Up 1.7 Trillion Won from Last Year

Increase in Acquisition and Local Income Taxes, Decrease in Automobile Taxes
Local Tax Revenues Rose Last Year as Well... Impact of Real Estate Recovery and More

Local tax revenues for the first quarter of this year across local governments nationwide have exceeded 25 trillion won. This marks an increase of 1.7 trillion won compared to the same period last year, primarily due to higher acquisition taxes and local income taxes.

According to the Ministry of the Interior and Safety on May 12, local tax revenues for the first quarter of this year amounted to 25.8 trillion won, up 1.7 trillion won from the same period last year (24.1 trillion won).

On the 12th, the Ministry of the Interior and Safety announced that local tax revenues for the first quarter of this year across local governments nationwide have exceeded 25 trillion won. Yonhap News

The collection rate, which represents the ratio of actual tax collected to the budget, reached 22.4% of the total annual budget (115.1 trillion won) this year. This is a 0.7 percentage point increase compared to the collection rate of 21.7% during the same period last year.

By tax category, acquisition tax revenues increased from 6.2 trillion won to 6.7 trillion won, and local income tax revenues rose from 3.3 trillion won to 3.8 trillion won. Local consumption tax revenues grew from 7.6 trillion won to 8.2 trillion won. In contrast, automobile tax revenues decreased slightly from 2.57 trillion won to 2.55 trillion won, and local education tax revenues declined from 1.46 trillion won to 1.45 trillion won.

Local tax revenues also showed an upward trend last year compared to the previous year. The increase in local tax revenue budgets is attributed to the recovery of the real estate market, the rebound in consumption, and the strengthening of the revenue base.

Last year, total local tax revenues amounted to 114.1 trillion won, an increase of 1.6 trillion won compared to revenues in 2023 (112.5 trillion won). Local tax revenues peaked at 118.6 trillion won in 2022, then decreased by 6.1 trillion won year-on-year to 112.5 trillion won in 2023. However, last year, revenues turned upward again, signaling a recovery in local tax income. The initial local tax budget for last year was 110.7 trillion won, but actual revenues exceeded this by 3.4 trillion won. As a result, local tax revenues were stable, with no revenue shortfall.

This year, the initial local tax budget is set at 115.1 trillion won, an increase of 4.4 trillion won from the previous year. By major tax category, the budgeted amounts are expected to be: local consumption tax (26.7 trillion won), acquisition tax (25.2 trillion won), local income tax (20.6 trillion won), and property tax (15.5 trillion won), in that order.