Household tax burden doubles income gains

The tax burden on average Korean households increased twice as fast as their income did in the first three quarters of last year, Statistics Korea said Monday.

The statistics bureau said two-person households each earned an average of 4.3 million won a month between January and September 2014, up 3.6 percent from the same period a year ago.

Meanwhile, those households each paid monthly taxes of about 154,276 won, up 5.9 percent from a year ago.

Taxes included regular direct taxes such as income and property taxes, and nonregular taxes such as real estate and automotive acquisition taxes.

Indirect taxes such as value-added tax or consumption tax were not included in the statistics.

If included, average households’ tax burden would have further increased, Statistics Korea noted.

The statistics office said the household tax burden has been growing faster than income for five consecutive years since 2010.

That year, their income grew about 6 percent, compared to taxes increasing by 11.5 percent.

The government has been facing growing criticism over increasing taxes following the latest public filings of last year’s tax settlements.

Opposition and ruling party lawmakers urged the Park Geun-hye administration to redraw its tax policy, saying the country cannot sustain its welfare spending without tax hikes.

However, President Park on Monday opposed raising taxes, saying it would further burden middle-income households.

By Park Hyong-ki (hkp@heraldcorp.com)