DPK: Government's Tax Reform Is 'Normalization of Taxes for Growth and Livelihoods'

Han Byungdo: "The government proposal is just the starting point"
Oh Kihyung: "Now, the debate has begun"

On August 4, the Democratic Party of Korea described the government's proposed tax law revision for next year as a "tax normalization measure for growth and livelihood." However, there are voices both inside and outside the party calling for the tax law to be refined through public debate.

Han Byungdo, acting leader and floor leader of the Democratic Party, stated at a parliamentary countermeasures meeting that day, "We will provide stronger support where it is needed and correct unreasonable tax systems," adding, "This revision aims to actively support strategic industries and domestic investment, provide substantial benefits to low-income citizens, young people, and local communities, while reasonably adjusting tax incentives that have low effectiveness or are excessively concentrated on small groups. These are all part of a tax normalization plan."

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Regarding real estate taxation, he said, "We will protect single-homeowners who actually reside in their property, and reasonably adjust benefits that are excessively concentrated on luxury or non-residential homes in accordance with property value and occupancy." Acting leader Han cited the expansion of comprehensive real estate tax and capital gains tax deductions, the easing of requirements for elderly single-homeowners to defer payment of comprehensive real estate tax, and the temporary alleviation of additional capital gains taxes on multiple-homeowners, stating, "In short, the goal of this revision is tax normalization for growth and public livelihood."

However, he also expressed his intention to reflect the voices from within and outside the party during the tax law discussion process. He stated, "The government's proposal is only the starting point for discussions in the National Assembly," and added, "The Democratic Party will closely examine policy effectiveness, public acceptance, and the predictability of the system throughout the parliamentary review process."

Oh Gihyung, the Democratic Party secretary of the Planning and Finance Committee responsible for reviewing tax laws, stated, "The government's proposal serves as a basis for social debate, and must be finalized through such discussions," adding, "The debate has only just begun." Regarding comprehensive real estate tax, Oh commented, "There are several points of contention," but also noted, "President Lee Jae-myung has made it clear that the intention is not to control real estate with tax policy. Social debate should be conducted with this awareness in mind." Previously, through social media, Oh remarked, "In the case of capital gains tax, it is understandable from the perspective of fair taxation to reduce the criticized holding deduction and unify it as a residence deduction." However, on comprehensive real estate tax he added, "Going forward, there will be more points to discuss and concrete data will be examined," emphasizing, "Above all, real estate taxation should not be about supply and demand management, but should take into account the fairness of taxation, predictability, and social consensus."

A first-term ruling party lawmaker from the Seoul metropolitan area, who serves on the Land, Infrastructure and Transport Committee, also commented on the tax law revision, stating, "The media seems to view this as an attempt to control real estate prices, but that does not seem to be the case," and explained, "This is about tax rationalization in response to the polarization of housing prices."

This content was produced with the assistance of AI translation services.