Asset market-linked tax revenue 37 trillion won in the first half alone, 76% higher than last year
Increase in real estate tax revenue, such as transfer tax and inheritance and gift tax
“You can clearly see the reason for the rise in house prices… Suspicion of tax intention”
[천지일보=김현진 기자] After the novel coronavirus infection (COVID-19), the government has collected an additional 33 trillion won in taxes. This is especially true in the booming phase of the asset market, such as real estate and stocks, in real estate transactions and holding tax revenues. Although the government failed to implement the real estate policy, the irony was that it enjoyed a boom in tax revenue.
According to the results of national tax revenues submitted by the Ministry of Strategy and Finance to the office of Rep. Yang Kyung-sook of the Democratic Party of Korea on the 16th, the national tax revenues linked to the asset market, such as capital gains tax, inheritance and gift tax, securities transaction tax, and special tax for rural areas, collected by the government this year amounted to 36.7 trillion won in the first half alone.
This is a 15.8 trillion won (75.6%) increase from the same period last year (20.9 trillion won). The transfer tax collected in the first half of this year was 18.3 trillion won, an increase of 7.2 trillion won (64.9%) compared to a year ago (11.1 trillion won). Nearly half of the increase in property tax revenue came from transfer taxes.
Transfer tax is a tax levied on income generated in the process of transferring ownership of assets such as real estate or stocks (large shareholder).
From November of last year to May of this year, which is the basis for transfer tax revenue in the first half, the housing transaction volume increased only 5.0% from the previous year to 727,000 units. interpreted
An increase in the transfer tax rate or an increase in transfer tax revenues related to securities may also have had an impact.
Inheritance and gift tax in the first half was 8.4 trillion won, up 4.3 trillion won (104.9%) from 4.1 trillion won in the same period last year. Even excluding the 2.3 trillion won in inheritance tax related to the late Samsung Chairman Lee Kun-hee, 2 trillion won increased.
This is interpreted as a result of the government’s policy of pressure on multi-homeowners, such as a heavy transfer tax on multi-homeowners and an increase in the comprehensive real estate tax, to create a balloon effect in the direction of increasing the gift of real estate to children, resulting in a large increase in the amount of gift tax.
Securities transaction tax revenue also increased by 2.2 trillion won (66.7%) to 5.5 trillion won in the first half from 3.3 trillion won a year ago.
From September of last year to May of this year, the amount of securities trading amounted to 3,811 trillion won, a 99% increase from a year ago. Under this influence, the special tax for rural areas levied along with income tax, acquisition tax, and comprehensive real estate tax also amounted to 4.5 trillion won. This is an increase of 2.1 trillion won (87.5%) from 2.4 trillion won a year ago.
Last year, the government collected a total of 52.6 trillion won from transfer tax, inheritance and gift tax, securities transaction tax, special tax for rural areas, and comprehensive real estate tax. This is an increase of 17.1 trillion won from 35.5 trillion won in the same period a year ago.
Last year, transfer tax revenue increased by 7.6 trillion won compared to the previous year, and securities transaction tax increased by 4.3 trillion won, inheritance and gift tax by 2 trillion won, and comprehensive real estate tax by 900 billion won.
If you add up to 17.1 trillion won in taxes collected from the real estate and stock markets last year and 15.8 trillion won this year, it is equivalent to collecting 33 trillion won more in the asset market after the corona crisis.
The increase in the amount of property tax is expected to be even greater when taking into account the death tax to be lifted at the end of the year.
In this regard, the government said it did not aim to increase tax revenues in the asset market. In other words, it means that we are experiencing an unexpected increase in tax revenue due to unexpected rises in real estate and stock markets.
The asset bubble created by the government’s real estate policy and the liquidity supply policy in the Corona situation is creating an unintended boom in tax revenue.
For this reason, Shin Se-don, a professor of economics at Sookmyung Women’s University, questioned whether the government’s failure in real estate policy might have been intended to raise tax revenue.
In an interview with the Cheonji Ilbo, Professor Shin said, “If you look at the government’s real estate supply policy, redevelopment and reconstruction are tightly tied, and the green belt is extremely limited in consideration of the natural environment. have to be limited In such a situation, they slapped the tax hard to catch the speculative forces. In addition, even if multi-family dwellers pay more taxes, they are in a situation where house prices rise even more.”
“I doubt that the Moon Jae-in administration really doesn’t know why house prices are going up, or that it doesn’t intend to raise real estate tax revenues for other reasons. Therefore, either the intention is to raise real estate tax revenue, or the political purpose is to inspire the hostility of people who own real estate to give a political vote to the homeless,” he said.
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