ID :
206156
Fri, 09/09/2011 - 06:13
Auther :
Shortlink :
https://oananews.org//node/206156
The shortlink copeid
S. Korea vows more deregulation to improve biz climate
SEOUL, Sept. 9 (Yonhap) -- South Korea will redouble its efforts to relax regulations in a bid to nurture a better business environment, the nation's top economic policymaker said Friday.
Finance Minister Bahk Jae-wan also expressed regret that the government recently decided to withdraw its additional tax cut plan for big businesses and the rich in the face of opposition from the political community.
"With the global economic uncertainty deepening, the role of businesses has become larger than ever before," Bahk told a meeting with other senior policymakers. "But we failed to lower corporate tax rates as the government and the ruling party recently finalized their tax revision bill."
"Despite the failure, we will step up our efforts to remove outdated regulations and lower numerous barriers (in the business sector)," Bahk added.
His remarks come two days after the government and the Grand National Party agreed to keep tax rates for high-income earners and large conglomerates unchanged.
Tax cuts have been a key part of President Lee Myung-bak's business polices. The government has sought to lower tax rates for high-income earners and conglomerates but lawmakers had opposed the move, saying that it would only benefit the wealthy.
Instead, both sides agreed to introduce a new corporate income bracket aimed at reducing tax rates mostly for small- and mid-sized enterprises.
"I feel sorry that we could not reduce the burden on the shoulders of businesses at a time when the external economic conditions remain tough," Bahk said.
In a meeting with reporters on Thursday, Bahk noted that it would be appropriate to resume the tax reduction move after achieving a balanced budget in 2013 as planned.
Meanwhile, the minister expressed regret for failing to keep inflation under control especially ahead of Chuseok, one of the nation's largest holidays.
The government has been struggling to control surging prices but efforts have been stymied, mostly by higher oil and commodity prices. South Korea's consumer prices surged 5.3 percent on-year in August, the fastest pace in three years and up from a 4.7 percent gain in July.
Finance Minister Bahk Jae-wan also expressed regret that the government recently decided to withdraw its additional tax cut plan for big businesses and the rich in the face of opposition from the political community.
"With the global economic uncertainty deepening, the role of businesses has become larger than ever before," Bahk told a meeting with other senior policymakers. "But we failed to lower corporate tax rates as the government and the ruling party recently finalized their tax revision bill."
"Despite the failure, we will step up our efforts to remove outdated regulations and lower numerous barriers (in the business sector)," Bahk added.
His remarks come two days after the government and the Grand National Party agreed to keep tax rates for high-income earners and large conglomerates unchanged.
Tax cuts have been a key part of President Lee Myung-bak's business polices. The government has sought to lower tax rates for high-income earners and conglomerates but lawmakers had opposed the move, saying that it would only benefit the wealthy.
Instead, both sides agreed to introduce a new corporate income bracket aimed at reducing tax rates mostly for small- and mid-sized enterprises.
"I feel sorry that we could not reduce the burden on the shoulders of businesses at a time when the external economic conditions remain tough," Bahk said.
In a meeting with reporters on Thursday, Bahk noted that it would be appropriate to resume the tax reduction move after achieving a balanced budget in 2013 as planned.
Meanwhile, the minister expressed regret for failing to keep inflation under control especially ahead of Chuseok, one of the nation's largest holidays.
The government has been struggling to control surging prices but efforts have been stymied, mostly by higher oil and commodity prices. South Korea's consumer prices surged 5.3 percent on-year in August, the fastest pace in three years and up from a 4.7 percent gain in July.
