Tax revenue falls 11.7 tril. won through October on weak corporate earnings

A man passes by the National Tax Service (NTS) building in Sejong City in this undated file photo. Newsis Korea's tax revenue sank 11.7 trillion won ($8.

4 billion) from a year earlier during the first 10 months of 2024 due mainly to weak corporate earnings, data showed Thursday. The government collected 293.6 trillion won in taxes over the January-October period, down 3.



8 percent from 305.2 trillion won logged during the same period last year, according to the data from the Ministry of Economy and Finance. The decline was led by falling corporate tax collection, which dipped 23.

5 percent, or 17.9 trillion won, to 58.2 trillion won during the cited period as local businesses suffered weak earnings last year, the ministry said.

In 2023, the operating profits of companies listed on the main bourse dipped 45 percent on-year. Those of firms listed on the tech-heavy KOSDAQ market also tumbled 39.8 percent, according to government data.

The amount of income tax collected inched up 0.2 percent over the cited period. Value-added tax amounted to 80.

2 trillion won in the 10-month period ending in October, marking a 6.1 percent increase from a year earlier on rising consumption. "Although the collection of other taxes remains relatively stable, corporate tax revenue continues to lag, making it challenging to close the gap," said Yoon Su-hyeon, a ministry official.

In October alone, the country's total tax revenue slid 0.8 percent on-year to 38.3 trillion won.

Korea is projected to suffer a massive tax revenue shortfall for the second consecutive year in 2024. The government is expected to collect 337.7 trillion won in taxes this year, a fall of 8.

1 percent, or 29.6 trillion won, from its forecast made in the 2024 budget planning. The revised amount is also 6.

4 trillion-won smaller than the 344.1 trillion won collected last year, when the country suffered a record shortfall of 56.4 trillion won.

(Yonhap).