Tax Revenues Surge Immediately after Run on Homes
22 February, 2021
Property acquisition tax revenue approached around W10 trillion last year, a record excessive, in line with the Ministry of Economy and Financing on Sunday (US$1=W1,105). A year earlier the full total amounted to W7.65 trillion.
"Final figures have however to be tallied, but they are expected to have increased 50 percent on Seoul and 30 to 40 percent on Gyeonggi Province," a authorities official said. "In additional provinces they're approximated to have risen by around W2 trillion, an identical increase to the prior year."
In Seoul alone, persons paid a record W3.7 trillion in property acquisition tax this past year, up 55 percent.
The primary reason is that home purchases soared last year on panic buying as Koreans borrowed heavily to buy apartments fearing an additional increase in prices. Apartment revenue in Seoul surged 35 percent.
Property acquisition taxes are actually calculated in proportion to you see, the price of a home, and prices surged last year.
Koreans shoulder heavier property acquisition taxes than a great many other countries. By 2018, the ratio of real estate acquisition taxes to GDP stood at two percent, which is four situations the common of the G7 countries. It is 0.3 percent in Japan and 0.1 percent in the U.S.
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