"Not Punitive Tax... Taxation Principles Dictate Burden Based on Ability to Pay"

[Anchor]

As the government signals a hike in the comprehensive real estate holding tax, Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol has reiterated the principle that taxes should be levied according to a taxpayer's ability to pay. He once again underscored the stance of increasing the tax burden for owners of multiple homes, non-resident single-home owners, and ultra-luxury properties, while lowering it for actual residents who own a single home.

[Reporter]

Addressing the government's stance on strengthening the holding tax at the National Assembly yesterday (July 28), Deputy Prime Minister Koo Yun-cheol stated that the move is not aimed at curbing housing prices.

While emphasizing the tax burden on ultra-luxury homes and non-resident multiple-home owners, he also mentioned the principle of "taxation according to ability to pay," meaning taxes should match the taxpayer's capacity.

[Koo Yun-cheol / Deputy Prime Minister and Minister of Economy and Finance: This is not being done to control housing prices. We must apply the principle of taxation according to ability to pay. For homes actually lived in, we will provide even more support to ensure housing stability.]

Deputy Prime Minister Koo added that related details will be included in the government's real estate tax code revision plan to be announced early next month, stating, "We are preparing rational measures so that it is not perceived as punitive."

The People Power Party claimed that the stance on raising the holding tax is intimidating citizens with taxes.

[Lee Jong-wook / People Power Party Lawmaker: You will raise the holding tax and you will raise the transaction tax as well. What did the citizens do wrong to have their taxes raised? Within the span of a year, have multiple-home owners become devils?]

In response, the Democratic Party countered that it is a matter of normalizing real estate transactions and fair taxation.

[Oh Gi-hyeong / Democratic Party Lawmaker: You are saying that we are discussing a tax code revision approach from the perspective of normalizing the real estate tax system, and I think that direction is correct.]

Regarding measures for jeonse and wolse (lease and monthly rent) markets, Deputy Prime Minister Koo stated, "We are placing emphasis on increasing the supply of non-apartment housing that can be supplied at an early date."

(Camera: Lee Seung-hwan, Shin Dong-hwan | Video Editing: Wi Won-yang | Design: Lee Ga-jin)
※ Please note: This article was translated by AI and may contain errors.