South Korea’s tax revenue increased 3 trillion won (US$2.25 billion) in January from a year earlier following a massive shortfall the previous year, the finance ministry said Thursday.

The tax revenue came to 45.9 trillion won last month, compared with 42.9 trillion won the previous year, according to the Ministry of Economy and Finance.

The increase came as the government’s collection of value-added taxes rose 11.2 percent on-year to 23.1 trillion won as private consumption went up 1 percent in the fourth quarter of 2023, the ministry said.

It was also attributable to a low-base effect, as the country saw the sharpest fall in tax revenue for any January in January 2022, it added.

The amount of income tax collected rose 4.7 percent on-year to 13 trillion won last month on the back of the growing number of new employees and larger interest income over high interest rates.

The collection from securities transactions surged 24.6 percent to 400 billion won.

But the corporate tax fell 7.9 percent to 2 trilli
on won last month due mainly to the increase in the government’s tax refund for companies.

“Any massive shortfall in tax revenue is unlikely this year,” a ministry official said.

Last year, the country’s tax revenue fell 51.9 trillion won, or a record amount, on-year to come to 344.1 trillion won on weak corporate performances and an economic slowdown.

Source: Yonhap News Agency