People Power Party Urges Disclosure of Revised Revenue Projections and Details After Finalization of Tax Reform Plan

"Single-Home Households:
Distinction Between Resident and Non-Resident Should Be Eliminated"

As the government finalized the "2026 Tax Reform Plan," members of the ruling People Power Party from the Finance and Economy Planning Committee demanded, "Immediately release recalculated revenue effect estimates and tax burden attribution materials that reflect the revised bill."

On the 3rd, members of the ruling People Power Party belonging to the Finance and Economy Planning Committee held a press conference criticizing the 2026 tax reform plan. Photo by Yonhap News Agency

On the afternoon of September 1, the People Power Party members of the Finance and Economy Planning Committee held a press conference at the National Assembly’s press center and stated, "On August 3, the government announced that the tax reform would increase tax revenue by 3.443 trillion won, of which 2.1815 trillion won would come from the comprehensive real estate tax. That accounts for 63% of the total tax hike. If the comprehensive real estate tax is partially rolled back today, those figures should change. Yet nowhere in the materials released by the government today is there a recalculated revenue effect."

The committee members further criticized, "They have submitted a tax law to the National Assembly without disclosing how much tax will be collected and expect the National Assembly to review it? The ‘other’ category on the tax burden attribution table still lumps together 4.6831 trillion won, which is even larger than the total tax increase. They have not disclosed who will actually pay this tax."

The members also called for the withdrawal of the plan to increase the fair market value ratio. They noted, "The only changes compared to the original plan that are visible to the public are the deduction amount and cap. The fair market value ratio, which actually determines the tax amount, remains as is." They continued, "Even if the deduction stays at 1.2 billion won, if the taxable base itself increases, the tax will go up. In essence, nothing has really changed."

Bae Junyoung, the opposition party secretary of the committee, criticized, "During the hasty 16-day legislative notice period, the government neither properly collected opinions nor prepared countermeasures, shifting all responsibilities to the National Assembly." He added, "They say they revised about seven items in the bill, but the substance remains unchanged; only the surface details have been tinkered with." Another committee member, Lee Jongwook, commented, "At minimum, when it comes to single household, single homeownership, our basic position is to eliminate the distinction between residence and non-residence for the opposition parties."

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