Gyeonggi Province Tax Revenue Up 180 Billion Won Through May, Yet Falls Short of Target

▲ Gyeonggi Provincial Government Complex

Gyeonggi Province’s tax revenue for the first five months of this year has increased by approximately 180 billion won compared to the same period last year.

However, as the revenue has failed to meet the annual collection target, the province is expected to continue facing financial difficulties.

According to Gyeonggi Province on July 2, the total provincial tax collection from January to May this year amounted to 6.2333 trillion won, an increase of 186.9 billion won (3.1%) from the 6.0464 trillion won collected during the same period last year.

By tax category, acquisition tax, which accounts for the largest portion of provincial tax, reached 3.2687 trillion won, an increase of 326.2 billion won (11.1%) from the previous year (2.9425 trillion won).

Local education tax also saw an increase of 26 billion won (4.4%), rising from 588.1 billion won to 614.1 billion won.

Conversely, local consumption tax decreased by 143.8 billion won (7.3%), falling from 1.9817 trillion won last year to 1.8379 trillion won this year.

Registration and license tax also dropped by 8.7 billion won, from 256.3 billion won to 247.6 billion won, while leisure tax decreased by 6.3 billion won, from 177.9 billion won to 171.6 billion won.

Although provincial tax revenue has improved compared to the previous year, it remains below the collection target.

In the case of acquisition tax, which has relatively smaller monthly fluctuations compared to other tax categories, the amount collected was 130.2 billion won less than the target of 3.3989 trillion won for the January to May period.

A Gyeonggi Province official stated, "Due to the impact of policies related to heavy taxation on capital gains for multi-home owners, the acquisition tax collection rate was decent through May, but it has not been favorable since June." The official added, "Considering the current trend, it does not appear easy to achieve the overall collection target, including acquisition tax."

The total provincial tax collection target for Gyeonggi Province this year is 16.0633 trillion won.

As provincial tax revenue is the core funding source for the entire Gyeonggi Province general budget, there are concerns that a supplementary budget reduction will be inevitable if the target is not met by the end of the year.

(Photo: Provided by Gyeonggi Province, Yonhap News)

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