By Yoon Won-sup
Staff Reporter
The main opposition Grand National Party (GNP) and the United New Democratic Party (UNDP) are seeking to pass a bill for lowering the real estate transaction tax rate from two percent to one percent in the National Assembly session next month.
The two parties also consider lowering the capital gains tax for those who own only one house for a long time.
The tax reduction is likely because the presidential power transition team is also considering it in order to revive the real estate market, sources at the transition committee said Friday.
``The real estate transaction tax reduction by 1 percentage point should be realized immediately as well as the reduction in capital gains tax for one-house-owner,’’ Sohn Hak-kyu, chairman of the UNDP, said. ``We plan to pass a bill for it in the parliamentary session next month.’’
Under the current law, the capital gains tax can be exempt by up to 45 percent for a long-time possessor of a house. The UNDP reportedly plans to raise the figure to 80 percent.
Lee Hahn-koo, chief policymaker of the GNP, said his party also agrees to the real estate-related tax reductions.
``I welcome the UNDP’s plan to decrease the real estate transaction tax from two percent to one percent,’’ Lee said. But the GNP differed in how much percentage of exemption should be made in the capital gains tax.
Though the transition team refused to confirm whether they approve the tax reduction as policy suggestion for President-elect Lee Myung-bak, they were optimistic.
Rep. Choi Kyung-hwan, economic affairs chief of the team, said, ``The team decided only on a big picture to revive the transaction in the market without finalizing any detailed measures. But we will consider the tax reduction if the two parties want it.’’