National Tax Revenue Reaches 353.6 Trillion Won from January to November... Annual Total Expected to Exceed Target by Over 2 Trillion Won

The Ministry of Economy and Finance announced on December 31 that national tax revenue for January to November this year reached 353.6 trillion won, an increase of 37.9 trillion won (12.0%) compared to the same period last year.

This year’s second supplementary budget revenue target is 372.1 trillion won, meaning that if an additional 18.5 trillion won is collected in December, the target will be achieved. Assuming that December’s revenue remains the same as last year’s December revenue (20.8 trillion won), the annual revenue for this year is expected to exceed the target by more than 2 trillion won.

In the second supplementary budget last June, the national tax revenue budget for this year was reduced from the original 382.4 trillion won by 10.3 trillion won to 372.1 trillion won, but tax revenue is turning out to be somewhat better than expected at the time. An official from the Ministry of Economy and Finance explained, "Any amount exceeding the revenue target will be used for local grant settlements, contributions to public fund repayment funds, and debt repayment in accordance with the National Finance Act." National debt is also expected to decrease slightly compared to initial projections.

The progress rate compared to the second supplementary budget was 95.0%, which is 1.2 percentage points higher than last year (93.8%). This figure is also favorable compared to the average progress rate over the past five years (94.0%).

Increases in corporate tax and income tax significantly contributed to the rise in tax revenue. Corporate tax reached 82.4 trillion won, up 22.2 trillion won (36.9%) due to improved corporate performance in the first half of last year and this year. Income tax rose to 121.5 trillion won, an increase of 13.3 trillion won (11.3%). This was the result of increased labor income tax due to expanded bonus payments and a rise in the number of workers, as well as higher capital gains tax from booming overseas stock markets.

Among the three major tax categories, value-added tax was 79.2 trillion won, down 500 billion won (0.6%) due to increased refunds. Securities transaction tax fell by 1.4 trillion won (30.9%) to 3.1 trillion won, influenced by the effect of the reduced securities transaction tax rate. The transportation, energy, and environment tax increased by 1.8 trillion won (17.0%) to 12.2 trillion won, thanks to the partial restoration of the flexible fuel tax rate.

Last month, national tax revenue was 22.9 trillion won, an increase of 700 billion won (3.3%) compared to the same month last year. Income tax rose by 1.2 trillion won (7.9%) to 16.3 trillion won, due to an increase in interim prepayment tax amounts, a rise in the number of workers, and an increase in total wage payments. As of October, the number of workers increased by 286,000 (1.8%) compared to the same month last year. Value-added tax decreased by 800 billion won due to increased refunds. The special rural tax surged by 93.1% to 400 billion won, driven by an increase in KOSPI trading volume.