By Jun Ji-hye
President Park Geun-hye vowed Monday to seek ways of resolving a public outcry over changes to the tax codes used when people file their annual tax statements.
"A number of people have raised complaints over the tax filings. This showed that the government failed to explain changes to the income tax codes to the public sufficiently," Park said. "The government needs to find ways that will no longer impose hardships on people who need to increase their expenses in February ahead of the Lunar New Year holiday and prepare for a new school term."
Park made the remarks at this year's first meeting with her senior secretaries at Cheong Wa Dae.
At the end of 2013, the government revised the tax law, setting the baseline salary level subject to higher income taxation to 55 million won ($50,800). When doing so, the government then claimed that the revision was designed to collect more tax from high-income earners.
However, while going through the tax filings for 2014, more than 15 million salaried workers became upset over what they see as having to pay more tax under such revisions.
Critics and opposition lawmakers, as well as some members of the ruling Saenuri Party, have argued that the government used trickery to introduce tax hikes to cover a budget necessary to implement President Park's welfare pledges made during the 2012 presidential election.
Park said the latest controversy showed that one change in government policy can bring about enormous changes.
"This raised the need for a keen and overall review and analysis when the government changes a policy or introduces new one," said Park.
She admitted that the government suffered a shortfall in tax revenue last year, while welfare demand increased. She cited the need to reform the local subsidy system as part of efforts to resolving the financial problems facing both the central and local governments.
Follow Jun Ji-hye on Twitter @TheKopJihye
President Park Geun-hye vowed Monday to seek ways of resolving a public outcry over changes to the tax codes used when people file their annual tax statements.
"A number of people have raised complaints over the tax filings. This showed that the government failed to explain changes to the income tax codes to the public sufficiently," Park said. "The government needs to find ways that will no longer impose hardships on people who need to increase their expenses in February ahead of the Lunar New Year holiday and prepare for a new school term."
Park made the remarks at this year's first meeting with her senior secretaries at Cheong Wa Dae.
At the end of 2013, the government revised the tax law, setting the baseline salary level subject to higher income taxation to 55 million won ($50,800). When doing so, the government then claimed that the revision was designed to collect more tax from high-income earners.
However, while going through the tax filings for 2014, more than 15 million salaried workers became upset over what they see as having to pay more tax under such revisions.
Critics and opposition lawmakers, as well as some members of the ruling Saenuri Party, have argued that the government used trickery to introduce tax hikes to cover a budget necessary to implement President Park's welfare pledges made during the 2012 presidential election.
Park said the latest controversy showed that one change in government policy can bring about enormous changes.
"This raised the need for a keen and overall review and analysis when the government changes a policy or introduces new one," said Park.
She admitted that the government suffered a shortfall in tax revenue last year, while welfare demand increased. She cited the need to reform the local subsidy system as part of efforts to resolving the financial problems facing both the central and local governments.
Follow Jun Ji-hye on Twitter @TheKopJihye
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