Seoul: Acting President Choi Sang-mok on Tuesday emphasized the necessity of revising South Korea's longstanding inheritance tax framework, advocating for tax policies that are "reasonable" and adapt to the changing economic environment.
According to Yonhap News Agency, Choi made these remarks during a ceremony celebrating the 59th Taxpayers' Day in Seoul, where he reiterated the government's dedication to reforming the five-stage inheritance tax system, which has been stagnant for years without any updates.
Choi pointed out that the current system, originally intended to tax individuals with substantial wealth, has become an increasing burden on the middle class due to economic growth and the appreciation of asset values. He stressed that outdated tax policies impose unnecessary strains on the public as times and circumstances evolve.
The Acting President announced that the government plans to unveil a new strategy in March aimed at rationalizing inheritance tax deductions. This strategy includes transitioning to a heritage acquisition tax system, where taxes would be imposed solely on inherited assets.
Choi concluded by affirming the government's ongoing efforts to create a fair tax system that resonates with public sentiment and acknowledges the contributions of honest taxpayers.