“Let’s fill an empty country barn with a pandemic”
Breaking the’Brexit Promise’ and eventually symptoms
After 47 years… Up to 25% in 2023
Even when the new investment special deduction’carrot’ is presented,
Pro-business keynote The expected business world is embarrassing
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After Brexit (British withdrawal from the European Union, Brexit), the UK, which has pledged to create a’good business environment’, decided to raise the corporate tax rate to a maximum of 25%. This is the first corporate tax increase card since 1974 to fill the country’s barns that have been ravaged by the pandemic (a global pandemic). It is noteworthy whether the UK’s move will signal a global move to overcome the fiscal crisis with tax increases.
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According to the UK Daily Guardian on the 3rd (local time), Finance Minister Rishi Sunak raised the current 19% corporate tax rate to 25% in April 2023 while reporting the budget to the House of Representatives to overcome the new coronavirus infection (Corona 19) crisis. He announced that he would respond to the increased debt. The highest tax rate of 25% is applied to companies that make a net profit of more than £250,000 per year (approximately 3922.6 million won). This accounts for 10% of all UK companies. The corporate tax rate for companies with annual net income of less than £50,000 remains at 19%.
Britain is in a position that tax increases are an inevitable option. According to the UK Statistical Office, the UK government’s debt in fiscal year 2020-2021 was £355 billion, which is 17% of gross domestic product (GDP). It is the largest since World War II. It is pointed out that there is no sharper alternative than raising the corporate tax for the UK government, which should launch a £350 billion stimulus package by next year.
However, in anticipation of a backlash from the business world, he also released a carrot book. It announced a’special deduction’ plan that deducts 130% of the cost of new corporate investment. The Guardian explained that it was a measure that allowed companies to receive tax credits of up to £0.25 for every £1 invested. “Corporate tax is still the lowest among the seven major countries (G7),” said Minister Soo Nak.
However, the British business community is in an embarrassing atmosphere. This is because the British government has shown the trend of pro-business in the Brexit phase. British Prime Minister Boris Johnson previously said, “I will put a red carpet on businessmen,” and “I will cut the corporate tax rate to 17% and raise the gear of the British economy.”
/ Reporter Kwak Yoon-ah [email protected]
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