South Korean lobby groups call for corporate tax to be reduced
Six major business lobby groups in South Korea have called for the swift passing of a corporate tax reduction bill to help ramp up employment and investments.
The amendment to the Corporate Tax Act, which involves the reduction of the corporate tax rate from 25% to 22%, is currently pending in the National Assembly, reported The Korea Times.
“Consumption is shrinking rapidly due to interest rate hikes and rising prices, and corporate profitability is also deteriorating due to high exchange rates and rising raw material prices,” said the lobby groups.
“It is essential to improve the corporate tax system to reduce the burden by improving cash flow to respond to the threat of a prolonged economic recession,” they said. “When the corporate tax is lowered, benefits are returned to not only the companies but also society as a whole.”
The six lobby groups comprise the Korea Chamber of Commerce and Industry (KCCI), Korea Enterprises Federation (KEF), the Federation of Korean Industries (FKI), the Korea International Trade Association (KITA), the Korea Federation of SMEs and the Federation of Middle Market Enterprises of Korea.