South Korea will readjust rules regarding the real-estate holding tax system to promote the domestic construction sector and invigorate country's sluggish economy, the Financial Ministry said Tuesday.
"We expect that the measure will activate the private sector and help strengthen the nation's growth engine in the process," said Yoon Young-sun, deputy finance ministry for tax and customs.
According to the ministry, the minimum tax base for homes subject to the comprehensive real-estate holding tax will be raised from the current 600 million won (521,740 U.S. dollars) to 900 million won (782,610 U.S. dollars).
Tax rates will be adjusted to 0.5-1 percent, down from the current 1-3 percent. An additional cut of 10-30 percent will also be given to people over 60 who own a single house, the ministry said.
The ministry estimated households will save a total of 2.23 trillion won (1.93 billion U.S. dollars) in tax burdens by the end of 2010 due to the new adjustment.
Source:Xinhua
|
Comment
Tell A Friend
Print Format
Save Article