Meeting of the party government office on the “relaxation of the standard for property tax and large shareholders” I cannot conclude

Entry 2020.11.02 00:07

Government proposes plan to soften ‘large shareholder standard’ from 300 million to 500 million
與 insisted, “Let’s postpone until 2023”
Based on the easing of property taxes, the government is ‘600 million’ and the old is ‘900 million’

Additionally, the Democratic Party, the government, and the Blue House made final adjustments on January 1, easing the property tax for homeowners and the standard for capital gains tax. No conclusion was reached.

The party, government, and government held a private council at the Prime Minister’s Consulate in Samcheong-dong, Jongno-gu, Seoul that evening, discussing the Korean version of the New Deal, property tax, and standards for large shareholders. When sensitive issues such as property tax are discussed, only a few members are said to have participated in the party, including Representative Lee Nak-yeon and Park Tae-yeon Kim, Prime Minister Jeong Sye-gyun, and Goo Yun-cheol. , Head of the State Affairs Coordination Office in the government, and President Roh Young-min and Chief Jeong Moo-suk Choi Jae-seong at the Blue House.

It is reported that the government and the Blue House proposed a ‘listing price of less than 600 million won’ and the Democratic Party ‘less than 900 million won’ as a standard of ‘a low-middle priced house’ to alleviate the property tax that day. The Democratic Party is reported to be in a position that if the property tax easing standard is set at ‘900 million or less’, it is possible to reach a compromise with the government by differentially reducing the tax rate based on the price of the House.

The advertised price of 900 million won is equivalent to about 1.3 billion won in market price terms. Some criticize “Does it benefit expensive homes?” However, there is a voice within the party that must protect “less than 900 million won” for the Seoul-area vote in re-election next April.

Regarding the standard for large shareholders, which imposes a capital gains tax of 22 to 33% (including local tax) on profits from the sale of shares, the government has proposed ‘500 million won per person’ . This is less than ‘300 million won’ according to the Income Tax Law Enforcement Decree, which was scheduled to take effect next year.

However, the Democratic Party is known to have struggled to find a point of contact by insisting on a “two-year suspension.” To avoid taxes, the Democratic Party is demanding a plan to postpone its implementation until 2023, fearing the stock market will be hit by a massive sales spill later this year.

The conclusion of the meeting was not disclosed. However, there is a possibility that the highest ranking officials of the party government reached a consensus because it was a close discussion.