ID :
183837
Mon, 05/23/2011 - 13:35
Auther :
Shortlink :
https://oananews.org//node/183837
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S. Korea's finance minister-designate favors gov't tax cuts
SEOUL, May 23 (Yonhap) -- South Korea's finance minister-designate said Monday that he supports the government's tax reduction plans, his first official remarks on the nation's economic policy after being nominated earlier this month.
"It (tax reduction) is the symbol of the Lee Myung-bak administration's policies, and we need to keep going in that direction for the sake of policy consistency and securing trust from the market," Bahk Jae-wan said in a written response to questions by lawmakers ahead of his confirmation hearing on Wednesday.
His remarks came amid growing outcries from opposition parties over the government's pursuit of reduction in income and corporate tax rates.
Opposition lawmakers say that such tax cuts are intended to benefit wealthy people only, while government policymakers argue that the measure is necessary to boost consumption and corporate activities.
Some leaders of the ruling Grand National Party (GNP) recently joined the move to oppose such tax reduction plans.
Regarding the growing demand for lowering oil tax rates amid surging crude prices, however, Bahk hinted that he will not consider the move for some time, saying that such a decision should be based on an analysis of diverse factors such as fiscal status and the overall oil market conditions.
But he added that the government will brace itself for cutting oil taxes in case crude prices spike in a short period of time, leaving the chances for tax cuts open for emergency situations.
Controversy over oil taxes, which account for a chunk of gasoline and diesel prices at the pump here, has been growing as higher energy costs are feared to hurt the livelihood of low- and mid-income earners.
Asked for his stance on the ongoing debate on whether to provide expanded free welfare programs, he made it clear that he does not support that proposal, citing the current financial conditions of the government.
"It (tax reduction) is the symbol of the Lee Myung-bak administration's policies, and we need to keep going in that direction for the sake of policy consistency and securing trust from the market," Bahk Jae-wan said in a written response to questions by lawmakers ahead of his confirmation hearing on Wednesday.
His remarks came amid growing outcries from opposition parties over the government's pursuit of reduction in income and corporate tax rates.
Opposition lawmakers say that such tax cuts are intended to benefit wealthy people only, while government policymakers argue that the measure is necessary to boost consumption and corporate activities.
Some leaders of the ruling Grand National Party (GNP) recently joined the move to oppose such tax reduction plans.
Regarding the growing demand for lowering oil tax rates amid surging crude prices, however, Bahk hinted that he will not consider the move for some time, saying that such a decision should be based on an analysis of diverse factors such as fiscal status and the overall oil market conditions.
But he added that the government will brace itself for cutting oil taxes in case crude prices spike in a short period of time, leaving the chances for tax cuts open for emergency situations.
Controversy over oil taxes, which account for a chunk of gasoline and diesel prices at the pump here, has been growing as higher energy costs are feared to hurt the livelihood of low- and mid-income earners.
Asked for his stance on the ongoing debate on whether to provide expanded free welfare programs, he made it clear that he does not support that proposal, citing the current financial conditions of the government.
