Seoul: South Korea's tax revenue witnessed a substantial increase of over 21 trillion won (US$15.5 billion) in the first five months of the year, a rise largely driven by enhanced corporate tax collection, the finance ministry reported on Monday. The government amassed 172.3 trillion won in taxes from January to May, compared to 151 trillion won during the same timeframe last year, as per data from the Ministry of Economy and Finance.
According to Yonhap News Agency, the significant rise in tax revenue was primarily fueled by a surge in corporate tax, which surged to 42.7 trillion won, marking a 51 percent growth from the previous year. The boost in corporate earnings in 2024, coupled with increased interest and dividend income, played a pivotal role in this growth, as highlighted by a senior official from the ministry.
Income tax revenue also experienced an upswing, rising by 6.2 trillion won to reach 57.7 trillion won over the mentioned period. This increase was largely attributed to a rise in bonus payments and a greater number of employed workers. On the other hand, value-added tax revenue saw a decline of 1.1 trillion won, partly due to increased tax refunds and a base effect from the elevated figures of the previous year.