The high income earners in South Korea might soon be deprived of certain tax benefits. The country is now looking to reduce tax benefits that were available for the high income earners, as well as large businesses until now. The move will be a part of the efforts to raise more tax revenue in order to meet the ever-increasing fiscal demand from expanded welfare program.
The expectations are increasing day by day and the state-run Korea Institute of Public Finance made such recommendations to the government before. Recommendations have been made to the government for the policy related to temporary tax cut and exemption programs. The tax benefit programs are being provided on a temporary basis for particular groups in order to support their lives or business activities.
On the other hand, experts have raised concerns that the benefits are becoming established, are having less impact and are increasing the government finances’ burden. A public hearing in Seoul on June 26, 2013, revealed the recommendations which are focusing mostly on the principles that the majority of maturing tax benefit programs will expire, as scheduled.
The focus of the efforts is placed on the high income earners and large businesses. The experts think that this will increase the burden on the high income earners.