By Bahk Eun-ji
The Seoul Metropolitan Government plans to impose "leisure taxes" on casinos and online sports gambling to bolster its tax revenues by about 100 billion won ($89.9 million).
The city is also considering raising its leisure tax rate.
So far, Seoul has slapped leisure taxes on ticket sales for such gambling industries as horse racing, cycle racing and motor boat racing. The operators of such events currently pay 10 percent of their ticket sales as leisure tax.
"We basically agree on the need for a hike as the gambling industry has to give part of its earnings back to the community. But we have yet to fix the rate increase," said an official from the city government.
The city collected a total of 170 billion won in leisure tax revenue last year. If the scope of industries subject to leisure tax is expanded to include casinos and Sports Toto, the online sports gambling site, Seoul is expected to see its tax revenue increase by more than 100 billion won.
However, whether the city will be able to carry through its plan to expand the scope of industries subject to leisure tax remains uncertain.
In November 2011, Rep. Baek Jae-hyun of the Democratic United Party proposed a bill to raise the leisure tax rate to 20 percent but the proposal has yet to receive approval at the National Assembly amid strong protest and lobbying from various interest groups.
The city plans to seek cooperation from related agencies for the expansion of taxable industries as it needs to revise several tax laws and block opposition from the operators of the gambling industries.
The city is also considering steps to cut tax benefits for education, cultural and other public companies. The city plans to propose a revision of the related tax law after it finishes its study on the reduction of tax benefits granted to various state-invested business entities.
"Seoul City's move to bolster its tax revenues by reducing tax benefits as a means to boost its tax revenues is largely in line with the tax policies by the new government," the city official said.
The Seoul Metropolitan Government plans to impose "leisure taxes" on casinos and online sports gambling to bolster its tax revenues by about 100 billion won ($89.9 million).
The city is also considering raising its leisure tax rate.
So far, Seoul has slapped leisure taxes on ticket sales for such gambling industries as horse racing, cycle racing and motor boat racing. The operators of such events currently pay 10 percent of their ticket sales as leisure tax.
"We basically agree on the need for a hike as the gambling industry has to give part of its earnings back to the community. But we have yet to fix the rate increase," said an official from the city government.
The city collected a total of 170 billion won in leisure tax revenue last year. If the scope of industries subject to leisure tax is expanded to include casinos and Sports Toto, the online sports gambling site, Seoul is expected to see its tax revenue increase by more than 100 billion won.
However, whether the city will be able to carry through its plan to expand the scope of industries subject to leisure tax remains uncertain.
In November 2011, Rep. Baek Jae-hyun of the Democratic United Party proposed a bill to raise the leisure tax rate to 20 percent but the proposal has yet to receive approval at the National Assembly amid strong protest and lobbying from various interest groups.
The city plans to seek cooperation from related agencies for the expansion of taxable industries as it needs to revise several tax laws and block opposition from the operators of the gambling industries.
The city is also considering steps to cut tax benefits for education, cultural and other public companies. The city plans to propose a revision of the related tax law after it finishes its study on the reduction of tax benefits granted to various state-invested business entities.
"Seoul City's move to bolster its tax revenues by reducing tax benefits as a means to boost its tax revenues is largely in line with the tax policies by the new government," the city official said.
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