When the public housing price was announced and the outline of the’holding tax bomb’ was revealed, the backlash was fierce. 1 It wasn’t speculation as a homeowner, because there were several families who had to pay tens of millions to tens of millions of won of ownership tax (comprehensive real estate tax + property tax) just because the house price rose. It’s hard to bear taxes, not even income-less retirees as well as working-age homeowners, and major Internet communities are complaining that “it’s not paying taxes, it’s extortion.”
In response to this, the government is in the position that “there are only a few households who are required to pay the tax tax.” The logic is also that it is natural for households with higher house prices to pay more ownership tax. The government’s claim is not absurd, as 3.6% of all households are subject to tax payment. Even so, the fact that the end tax is far away from the “wealth tax” or “containment of speculative demand” for the purpose of introducing it is not rationalized.
It is questionable whether it is in accordance with the ‘adaptive burden principle’ that it is estimated that the ownership tax burden of a considerable number of owners of an expensive apartment in the Gangnam area of Seoul will exceed 10 million won this year. It is more difficult to understand whether it is normal for the so-called “Nodo River (Nowon, Dobong, Gangbuk-gu)” to have a large number of new households subject to taxation in the outskirts of Seoul, as well as in Busan, Daegu, Ulsan, and Sejong. It’s not just the tax tax. The government contemplated the property tax, saying, “By 2023, the tax rate for one-household households with a publicly announced price of less than 600 million won will be reduced by 0.05 percentage points.” However, the median price of apartments in Seoul has already exceeded 900 million won. Many of the apartment owners with a market price of around 1 billion won do not benefit from property tax cuts.
A total of 516,000 people came out last year because they were deprived of their dependents because their home had risen, and 18,000 people were added only to the public announcement this year. They have to pay a new health insurance premium of 238,000 won per month from November. “The government raised the price of the house as a countermeasure for being spoiled, but why should I pay a fine?” It is not for nothing.
The government is planning to gradually increase the rate of reflection of the market price to 90% by steps of the public announcement, which has increased to 70.2% of the market price this year. To do so, it will be necessary to fix the irrational tax payment standards in consideration of the people’s ability to pay taxes. It is necessary to raise the tax imposition standard (disclosure price exceeding 900 million won), which is the same for the 12th year, and make the calculation of the price of’standard housing’, which is the standard for determining the disclosure price, more transparently and more elaborately than now. If you ignore this process and push it forward, you will face strong tax provisions.
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