PM reiterates opposition to Lee's proposal of delaying heavy taxation on multiple home owners

Published : Dec 21, 2021 - 16:14 Updated : Dec 21, 2021 - 16:14

Lee Jae-myung, the presidential candidate of the ruling Democratic Party, enters a meeting room to have an online conversation with American political philosopher Michael Sandel over the future of South Korea at an arts center in Seoul on Tuesday. (Yonhap)

Prime Minister Kim Boo-kyum on Tuesday reiterated his opposition to a proposal from ruling party presidential candidate Lee Jae-myung to temporarily postpone heavy taxation on owners of multiple homes, saying it will bring down people's trust in government policies.

Lee has been calling for the government to delay imposing a heavy capital gains tax on owners of multiple homes when they sell their properties, claiming that such a move will put more homes on the market and thus help stabilize soaring housing prices.

But Kim disagreed, saying the government has already given a grace period to such owners.

"I do not think that those who have been opposed to the government policy will suddenly put their homes up for sale just because they heard the rule gets relaxed today" Kim said on local radio station CBS. "We already offered a grace period till the end of May when we introduced a heavy capital gains tax scheme, and (if we delay it), people who believed the government and sold their homes will suffer damage."

Kim's opposition is in line with Cheong Wa Dae and financial authorities who have already shown their reluctance over postponing the heavy transfer tax scheme.

This is not the first time Lee and the government showed their differences over policies. They previously were at odds over issues like providing COVID-19 relief grants to all people and postponing virtual asset taxation.

Lee on Tuesday took a step back from his capital gains tax proposal, saying his side and the government can consider discussing the plan after the March 9 presidential election.

"I can understand the government's position thinking that its policy principle and consistency can be harmed," Lee said. "I will request the current government fix the policy and try hard for legislation, but we know the actual enforcement of the plan would be carried out by the next government."

Lee asked the government to have "flexibility" in enforcing its policies.

"Policy does not exist to fulfill a policymaker's philosophy but to make people's lives better," he said. (Yonhap)