Photo : KBS News
The nation is expected to face a tax shortfall of nearly 30 trillion won, about 22.6 billion dollars, this year due to a steep decline in corporate tax revenue.
According to the finance ministry on Thursday, the government expects to collect 337-point-seven trillion won in taxes this year, eight-point-one percent or 29-point-six trillion won less than forecast during the 2024 budget planning process.
The revised amount is six-point-four trillion won lower than last year’s tax revenue of 344-point-one trillion won.
The nation is projected to witness a tax revenue deficit for the second consecutive year, as last year saw a record shortfall of 56-point-four trillion won.
The ministry said the decline in corporate tax revenue was steeper than expected due to weak global trade and a downturn in the semiconductor industry last year, with shock waves from last year’s poor performance reflected in this year’s tax revenue figures.
The shortfall in corporate tax revenue is projected to reach 14-point-five trillion won this year, accounting for about half of the overall tax revenue shortfall.