Gov't to keep minimum real estate tax base

SEOUL, Nov. 24 (Yonhap) -- The baseline for a tax levied on owners of high-end
homes will remain at the current level, officials said Monday, concluding
discussions over the widely debated tax system.
However, those who own only one home will receive tax deductions, according to
the officials.
The real estate tax, which applies to homes valued at 600 million won
(US$427,000) and up, was first introduced in 2005 under the liberal Roh Moo-hyun
administration to prevent real estate speculation and narrow the income gap. The
incumbent government has long attempted to revamp it, seeing it as a punitive
measure that goes against free market principles.
During a government-ruling party meeting Monday, officials decided to keep the
600 million won tax bar -- rewriting a pending government bill that seeks to
raise the bar to 900 million won -- while lowering the tax rate to the 0.5-1
percent range from the current 1-3 percent range.
For owners of one residential home, the tax bar will start at 900 million won or
higher.
hayney@yna.co.kr
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