We reported yesterday the Korean government
announced plans to revise the tax law. And compared the rest of the world， tax
collections in Korea are lower on average. Shin Se－min has the details.
Koreans are paying less taxes on average compared to other countries.
The International Monetary Fund says Korea′s tax－to－GDP ratio was around 17－point－nine
percent as of 2013，… lower than the world average of 18－point－eight percent.
Korea ranks 84th out of 157 countries researched. African country Lesotho posted the highest
tax－to－GDP ratio of over 50－percent， closely followed by Denmark， a northern
European country known for its social welfare. The UK， Canada and the United States ranked
higher than Korea，… while in Asia， Vietnam and China fell at 18－percent.
Kuwait recorded the lowest tax－to－GDP ratio of less than one－percent，… along
with other oil－producing Middle Eastern countries such as Bahrain， Iraq， and Saudi
Arabia. And experts say oil－rich countries don′t
necessarily need to collect taxes， as the natural resources allow them to secure enough
finances， lessening the burden on their people.
But the experts add while it′s good to know how other countries are doing， in terms
of collecting taxes，… that information can only go so far. ″Different countries have their own way
of governing， so it′s difficult to compare whether it is good or bad depending on the
amount of taxes being collected by their people.″ Meanwhile， the new tax code proposed by
the Korean government，… has to be approved next month by the National Assembly.
Shin Se－min， Arirang News.