Gyeonggi Province's Tax Revenue Up 19% Year-on-Year

Gyeonggi Province's tax revenue is showing signs of recovery.

The province announced on the 25th that its provincial tax collection for January through April totaled 2.189 trillion won, up 351.5 billion won (19.1%) compared to the same period last year (1.837 trillion won).

This represents 33.3% of this year's target of 6.852 trillion won.

By tax category, acquisition tax increased by 185.9 billion won compared to last year despite the permanent reduction in housing transaction tax rates, while local consumption tax surged 113.3% to 273.3 billion won from 128.1 billion won last year.

The province attributed the increase in provincial tax collection to overall economic recovery driven by increased real estate transaction volumes. The revision of the Local Tax Law and other regulations also contributed, as local consumption tax increased by 6 percentage points from 5% to 11% of the national VAT starting this year.

During this period, the number of housing transactions in the province reached 80,790 cases, an increase of 34,213 from 46,577 cases in the same period last year. Land and building transaction volumes also increased by 13% and 67%, respectively, compared to the same period last year. Architectural permit area, which was 5.689 million square meters in January through April last year, surged 69% to 9.621 million square meters.

The province expects the provincial tax target to be achieved smoothly given major development projects scheduled for the second half of this year, including the completion of large buildings in Sungnam's Wiryesin New City and Pangyo, land sales in Suwon's Gwanggyo New City, apartment move-ins in Gimpo's Han River New City, and land sales in Hwaseong's Dongtan 2 District.

A provincial official said, "Tax collection conditions are improving due to increased real estate activity," and added, "We will also strengthen local tax collection to achieve fiscal soundness."