DOUBTS OVER TAX REVISION PLAN

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The government's tax revision plan is aimed at providing tax relief to low- and medium-income earners to alleviate consumers' woes amid high inflation. But it falls short of the expectations of the public. Some say the plan only benefits multiple home owners and high-income earners.

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Many working people have reacted skeptically to the government's plan to provide tax relief.

[Soundbite] Kim Ji-soo(Office worker) : "Those who earn less need tax breaks the most. But this policy offers even less benefits for them."

[Soundbite] Choi Hyun-tae(Office worker) : "I don't think those benefits are enough compared to the soaring prices."

Those who earn less than 50 million won a year will only get a tax break of 14,000 won. The higher the income, the larger the tax cut. Those who make 100 million won a year will be able save 45,000 won a month in taxes. Under the government's plan, three quarters of the working population, most of whom are in the low to medium income bracket, will get less than 20,000 won in monthly tax relief. To address public backlash, the finance ministry released information last week to explain the plan. Eventually the finance minister himself stepped in to ease concerns.

[Soundbite] Choo Kyung-ho(Finance Minister) : "Those who earn less pay less in taxes. No wonder the amount of their tax benefits is smaller. But the decrease is even larger for low-income earners."

The government says those who pay less in taxes will get less in tax cuts, but are subject to other tax benefits. However, critics say those other benefits, such as deductions on credit card usage and pension income, apply only to those who can afford to spend or save more. Criticism is also rising over the comprehensive real estate tax, which has been slashed excessively for owners of multiple homes.

[Soundbite] (Single-home owner) : "Many people think low-income earners don't own more than one home. This policy doesn't seem to be for ordinary people, but for the rich."

Owners of a single home had to pay less this year, but next year their tax burden will grow. Meanwhile, owners of two or three homes are paying less and next year their taxes will be even lower than in 2020.

[Soundbite] Lee Sang-min(Fiscal Reform Institute) : "This tax overhaul plan is based on the principle of taxation. Each person has their own judgment of values. But there is no doubt that owners of multiple homes have benefited from this tax overhaul the most."

Some also point out that counter to the studies cited by the government, the corporation tax has done little to help create jobs or expand investment.