Gov't to scrap quasi-taxes to help biz sector

By Lee Joon-seung
SEOUL, June 17 (Yonhap) -- The government said Wednesday it wants to scrap
so-called quasi-taxes levied on companies as part of its effort to improve the
country's overall corporate environment.
The move aims to help companies boost investment in the face of sluggish economic
conditions, the Ministry of Strategy and Finance said. Detailed plans are
expected to be released early next month.
The ministry, in charge of the country's economic policy, said public charges
slapped on manufacturers have raised costs and hurt the competitiveness of local
companies.
Under the plan, separate environmental charges levied on makers of diesel-engine
cars and those for the disposal of plastic are to be discontinued, and small- and
medium- sized enterprises (SME) will be allowed to receive loans using
manufacturing equipment as collateral.
In the past, SMEs were only able to get loans by using real estate holdings.
Other measures agreed at a meeting of economy-related policymakers earlier in the
day call for more research and development support and tax breaks for "green"
reusable energy development, which the Lee Myung-bak administration hopes to
build up as a long-term national growth engine.
Finance Minister Yoon Jeung-hyun said that in order for the economy to gain
buoyancy there is a need to revive business investment and consumer spending.
He said the government has listened to suggestions made by business leaders and
entrepreneurs and plans to implement the new policies in the coming months.
On the country's overall economic condition, the minister cautiously said South
Korea may be making a comeback, and that the government formulating policies to
reflect this in the second half.
Yoon said, however, that while some indicators like consumer sentiment and asset
market are improving, there is a need to carefully monitor foreign exchange
rates, international energy prices and risks associated with North Korea.
yonngong@yna.co.kr
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