[Market Now] Korea’s tax revenue increases W11tr in first 2 months

The Ministry of Strategy and Finance said that the country’s tax revenue increased by 10.9 trillion won ($9.5 billion) in January-February from the same period last year.

The ministry said in a report Tuesday that total tax revenue amounted to 42.7 trillion won in the first two months, despite growing economic uncertainties and slowdown.

The report showed that its rate measuring actual tax collection in proportion to target revenue increased by more than 4 percentage points to 19.1 percent.

It attributes the tax revenue to an increase in the collection of value-added taxes and income taxes in the period on the back of growing real estate transactions, employment and nominal wages early this year. Taxes on cigarettes and stock transactions contributed 7.2 trillion won.

With a slowdown in domestic consumption and China, as well as growing volatility in international oil prices, risks remain as to whether Asia’s fourth largest economy can continue to increase its tax revenue, the report noted.

(hkp@heraldcorp.com)