As corporate earnings improved, corporate taxes increased, resulting in a tax collection last month that was more than 8 trillion won higher than the same month the previous year.
According to the 'April national tax revenue status' announced on the 30th by the Ministry of Economy and Finance, national tax revenue last month was 48.9 trillion won, an increase of 8.2 trillion won (20.2%) compared to April of last year.
Most of the increase was due to corporate taxes, which rose by 6.5 trillion won (160.0%) compared to the same month last year, reaching 10.6 trillion won. This growth was attributed to the operating profits of corporations listed on the Korea Composite Stock Price Index (KOSPI), which soared from 38.7 trillion won in 2023 to 106.2 trillion won in 2024.
Value-added taxes increased to 21 trillion won, up 900 billion won (4.3%) from April of last year, driven by a rise of nearly 80 won in the won-dollar exchange rate over the past year. Tariffs also rose by 200 billion won (50.3%) during the same period, reaching 700 billion won due to the exchange rate increase.
Income tax increased to 8.5 trillion won, up 600 billion won (8.3%) as the number of workers and total wages paid rose. Traffic, energy, and environmental taxes grew by 200 billion won to 1.1 trillion won, due to the return of fuel tax elasticity. In contrast, the security transaction tax decreased by 200 billion won to be recorded at 200 billion won as the transaction amounts dropped.
As of the cumulative basis for April, national tax revenue reached 142.2 trillion won, an increase of 16.6 trillion won compared to the same period last year. The progress rate against the budget is 37.2%. This is similar to last year’s progress rate (37.3%) but slightly lower than the average progress rate of the past five years (38.3%).
The figures for tax revenue progress over the past five years are based on the settlement of accounts. When based on the original budget, the progress rate for April last year was 34.2%, and for April 2023, it was 33.5%.
It is difficult to be optimistic about future tax revenue prospects. This is due to signals of economic recession emerging everywhere, coupled with the ongoing uncertainty surrounding the tariff policies of the Trump administration in the United States.
Choi Moon-kyun, head of the tax analysis division at the Ministry of Economy and Finance, noted, "The corporate earnings last year fell short of initial expectations, and the progress rate is also below average. Given the expanded uncertainty surrounding tariff policies, we need to monitor (tax revenue trends) until the second half of the year."