Suwon's Local Tax Revenue Expected to Rise 21 Billion Won Next Year

Suwon City's local tax revenue for 2009 is expected to reach approximately 844.8 billion won, a 2.6% increase from this year, driven by increases in acquisition tax and resident tax resulting from land sales in Gwanggyo New City and residential environment improvement project compensation in Godeung-dong.

According to the city, this year's local tax collection target is 823.7 billion won, consisting of provincial taxes such as acquisition tax and leisure tax totaling 392.4 billion won, and municipal taxes including resident tax totaling 431.2 billion won.

The city forecasts that next year's local tax revenue will increase by 21 billion won to 844.8 billion won. Of this, municipal taxes are expected to be 444.2 billion won (a 12.9 billion won increase) and provincial taxes are projected at 400.5 billion won (an 8.1 billion won increase).

This forecast is based on anticipated increases in resident tax from the Godeung-dong residential environment improvement project and compensation for three local industrial complexes. Additionally, the city expects increases in acquisition tax from Gwanggyo New City land sales and local education tax from cigarette consumption tax, which would boost provincial tax revenue.

Conversely, compared to this year, next year is expected to see a decline in apartment and multi-unit housing move-ins, which would result in decreased tax revenue. This has led to views that the real estate market outlook for 2009 remains bleak. A city official stated, "We are separately analyzing next year's non-tax revenue projections, including certification issuance fees and municipal profit-making projects."