National Assembly Budget Office "Reduced tax revenue by 19.5 trillion over 5 years due to revision of government tax law"

The National Assembly Budget Office predicted in its 2024 tax law amendment analysis report that the government's tax law amendment would reduce tax revenue by 19.5 trillion won between 2025 and 2029.

By tax category, inheritance tax and gift tax were expected to decrease by 20.2 trillion won, income tax by 1.1 trillion won, and corporate tax by 600 billion won, and value-added tax was expected to increase.

The tax burden on high-income earners was expected to decrease compared to the common people and the middle class, and the main factors were adjusting the minimum tax rate, lowering the maximum tax rate, and expanding the inheritance tax child deduction.

The ministry suggested that the reduction of the revenue base following the government's continued tax cuts could lead to worsening fiscal health, adding that it needs to consider income redistribution as the tax burden on high-income earners is expected to ease.