ID :
202230
Fri, 08/19/2011 - 04:20
Auther :
Shortlink :
https://oananews.org//node/202230
The shortlink copeid
Gov't committed to cutting income, corporate taxes: official
SEOUL, Aug. 19 (Yonhap) -- The government remains committed to lowering income and corporate taxes despite concerns that such a move may hurt fiscal health, a senior policymaker said Friday.
Vice Finance Minister Yim Jong-ryong said in a TV news show that cutting taxes could contribute to more business investments and consumer spending that is vital for economic growth.
"Tax cuts can help energize the private sector economy and create more jobs," he said. "With many foreign countries taking steps to lower taxes, South Korea needs to take similar measures to ensure that local firms maintain their global competitiveness."
On concerns that tax cuts could exert negative influence on fiscal soundness, Yim said Seoul will redouble its efforts to detect unnecessary outlays and raise spending-related efficiency. He added that measures can be taken to reduce tax breaks that can increase state revenue.
The remarks came as both the ruling Grand National Party and main opposition Democratic Party have called on the government not to lower taxes for large businesses and the wealthy.
Lowering taxes across the board is one of incumbent President Lee Myung-bak's main policy goals. Taxes levied on the middle class and small and medium enterprises have already been lowered in the past few years.
The vice minister, in addition, said that the government is currently not considering a move to lower taxes levied on petroleum prices that account for roughly half of consumer prices.
"The price of international crude oil has dipped in recent months due to concerns of a worldwide economic slowdown," he said.
The official said that if prices go up sharply in the future they could put a strain on people's livelihoods, prompting Seoul to consider lowering taxes on petroleum products such as gasoline and diesel fuel.
On inflationary pressures, Yim predicted that consumer prices would continue to rise by more than 4 percent in August, but may fall off next month, although conditions may change depending on overall agricultural output and developments in the Middle East.
South Korea's consumer prices jumped 4.7 percent on-year in July, far surpassing the government's annual inflation target of 4 percent for the seventh straight month.
Vice Finance Minister Yim Jong-ryong said in a TV news show that cutting taxes could contribute to more business investments and consumer spending that is vital for economic growth.
"Tax cuts can help energize the private sector economy and create more jobs," he said. "With many foreign countries taking steps to lower taxes, South Korea needs to take similar measures to ensure that local firms maintain their global competitiveness."
On concerns that tax cuts could exert negative influence on fiscal soundness, Yim said Seoul will redouble its efforts to detect unnecessary outlays and raise spending-related efficiency. He added that measures can be taken to reduce tax breaks that can increase state revenue.
The remarks came as both the ruling Grand National Party and main opposition Democratic Party have called on the government not to lower taxes for large businesses and the wealthy.
Lowering taxes across the board is one of incumbent President Lee Myung-bak's main policy goals. Taxes levied on the middle class and small and medium enterprises have already been lowered in the past few years.
The vice minister, in addition, said that the government is currently not considering a move to lower taxes levied on petroleum prices that account for roughly half of consumer prices.
"The price of international crude oil has dipped in recent months due to concerns of a worldwide economic slowdown," he said.
The official said that if prices go up sharply in the future they could put a strain on people's livelihoods, prompting Seoul to consider lowering taxes on petroleum products such as gasoline and diesel fuel.
On inflationary pressures, Yim predicted that consumer prices would continue to rise by more than 4 percent in August, but may fall off next month, although conditions may change depending on overall agricultural output and developments in the Middle East.
South Korea's consumer prices jumped 4.7 percent on-year in July, far surpassing the government's annual inflation target of 4 percent for the seventh straight month.
