Input 2021.01.15 14:01 | Revision 2021.01.15 14:07
Behind the ruling party’s claim to strengthen real estate tax
On the 15th, Deputy Prime Minister of Economy and Ministry of Strategy and Finance, Hong Nam-ki, explained the direction of the government’s real estate policy this year, saying, “We will strengthen the existing tax system,” putting an end to the recent controversy over the easing of the transfer tax for multi-homed people.
In addition, while emphasizing’new housing supply’ rather than opening the market of existing housing sales, he completely drew a line on the possibility of easing the transfer tax for multi-homed people raised by his remarks. In succession, Lee Nak-yeon, who expressed his will to strengthen the heavy taxation of the transfer tax, and President Kim Tae-nyeon, the leader of the state party, were belatedly confronting the positions.
On that day, Deputy Prime Minister Hong explained the direction of real estate policy in 2021 at the ’13th Real Estate Market Inspection Ministers’ Meeting held at the Seoul Government Complex. He emphasized’new homes’, saying that it is important that existing homes for sale appear on the market that day, “the most important thing is to supply new homes.”
Deputy Prime Minister Hong’s remarks on this day are interpreted as a result of his intention to completely block the possibility of easing the transfer tax for multi-homed people.
Earlier on the 10th, Deputy Prime Minister Hong appeared on the live broadcast of KBS 1TV’Current Diagnosis Live’ on the 10th and said, “It is an important supply policy to let people who currently have three or four sell their property.” “We can come up with all the supply measures.”
In addition, as some members of the Democratic Party also agreed to ease the transfer tax and ease the transfer tax, the possibility of easing the transfer tax from Deputy Prime Minister Hong was strengthened. It is known that Kim Jin-pyo, a former deputy prime minister of the economy and minister of finance and economy, submitted a policy proposal stating, “We must open a retreat for multi-homed people to sell their homes, such as during transfer tax, suspension or temporary reduction of exemption.” In addition, it is reported that Rep. Kim Byung-wook, a secretary of the National Assembly’s Political Affairs Committee, suggested that the transfer tax should be reduced or exempted if the house is sold before the transfer tax is implemented.
However, only six hours after Deputy Prime Minister Hong’s broadcast appearance in the middle of the transfer tax and the easing theory was raised, the Ministry of Information and Communication released a press clarification material stating that “there is no review of the transfer tax and easing measures.”
In the ruling party, the leadership repeatedly dismissed the possibility of easing the heavy taxation of the transfer tax. After Deputy Prime Minister Hong’s remarks, Hong Ik-pyo, chairman of the Democratic Party’s Policy Committee, said in a call with Chosun Biz that “there was no discussion or review of the easing of the heavy tax on the transfer tax.”
The following day, on the 11th, CEO Nak-yeon Lee said, “I have not considered easing the transfer tax and have no intention of reviewing it in the future.” On the 12th, the Democratic Party has no plans to temporarily reduce or ease the transfer tax on multi-homed people. The party has never discussed the easing of the transfer tax and has no plans to review it in the future,” he nailed.
As the ruling party’s leadership put forward a stance to block the possibility of easing the heavy transfer tax, it is observed that Hong, who is in charge of the government’s economic policy, was also forced to express a stance supporting the policy will of the Democratic Party leadership.
However, the statement that’we will strengthen the existing tax system’ is likely to cause another controversy. It is interpreted as expressing the will to strengthen real estate taxes such as property tax, comprehensive real estate tax, and capital gains tax in the direction of suppressing the desire for investment. Because it can be.
However, the controversy over the heavy transfer tax is expected to continue around the political world. On the 13th, the opposition People’s Power announced a real estate countermeasure at the level of the party, with the main idea of’cutting the transfer tax’. Kim Jong-in, chairman of the People’s Power Emergency Countermeasures Committee, argued that “the easing of the transfer tax will be a meaningful policy amendment as it is the only option in the situation where short-term supply expansion is necessary.”
According to the Ministry of Knowledge Economy, from June 1, the transfer tax heavy tax rate will be from 10%P (points) to 20%P for two houses in the area subject to adjustment, and from 20%P to 30%P for three houses. In the case of three or more houses and two houses in the area subject to adjustment, the tax rate rises from 0.6~3.2% to 1.2~6.0%.