CEOs call on next government to offer tax incentives for growth

Business leaders here called on the next government to raise tax revenue by boosting the economy rather than seeking tax hikes on businesses, according to a survey by the Korea Chamber of Commerce and Industry released Sunday.

Of the 252 CEOs surveyed, 70 percent said economic growth should be prioritized for the next government to revamp the nation’s taxation policy, calling for more tax incentives for businesses.

The CEOs urged to reduce corporate taxes overall, expand support for startups, differentiate tax benefits for Korean and foreign companies and lower inheritance taxes.

They also picked aid for business restructuring (16.3 percent) and support for COVID-19 losses (6.7 percent) as the key factors to consider.

When it comes to business restructuring in preparation for digital transformation and carbon neutrality, 43.7 percent said the government should enhance tax support for research and development and related infrastructure investment.

For COVID-19 losses, 52.9 percent said tax incentives should be offered so they can employ workers or maintain their workforce.

More than 70 percent of the respondents said the government should only consider raising taxes after the economy recovers, while 4.4 percent said tax hikes are necessary immediately.

“It seems unavoidable for the government to spend more on welfare amid a falling birthrate and an aging population. The best welfare policy is based on the steady growth of businesses,” said an official from the business lobby. “The next government should come up with tax policies to support businesses rather than raising taxes for a temporary effect.”

By Hong Yoo (yoohong@heraldcorp.com)