This report aims to review and analyze the ”2013 Tax Expenditure Proposal” submitted to the National Assembly by the Administration.
The estimated size of total tax expenditure turns out to be around 3 trillion won higher than the Administration reports in the proposal. We categorized tax expenditures by their beneficiaries (workers, farmers & fishermen, businesses, self-employed, vulnerable, and other).
In addition, this report delivers assessments on 103 tax expenditures whose sunsets are due in 2013. It suggests that 10 tax expenditure provisions should not be extended because of their ineffectiveness, limited beneficiary groups, and change of policy environment.
In order to mitigate the practice of extending the sunsets of tax expenditures, assessments on the tax expenditure items should be reinforced. The estimation method and the data of tax expenditures should not stay only within the administration, but it should be open to the public and used in the budgetary process in the National Assembly.
Tax Analysis Division
The estimated size of total tax expenditure turns out to be around 3 trillion won higher than the Administration reports in the proposal. We categorized tax expenditures by their beneficiaries (workers, farmers & fishermen, businesses, self-employed, vulnerable, and other).
In addition, this report delivers assessments on 103 tax expenditures whose sunsets are due in 2013. It suggests that 10 tax expenditure provisions should not be extended because of their ineffectiveness, limited beneficiary groups, and change of policy environment.
In order to mitigate the practice of extending the sunsets of tax expenditures, assessments on the tax expenditure items should be reinforced. The estimation method and the data of tax expenditures should not stay only within the administration, but it should be open to the public and used in the budgetary process in the National Assembly.
Tax Analysis Division