The National Assembly Budget Office published the ｢2013 Casebook on Cost Estimation of Legislative Bills on Tax Revenue｣. NABO has prepared cost estimations on more than 180 legislative bills on tax law revision per year and provided them to lawmakers and committees and has published the Casebook, which includes the expertise and experience accumulated in the process of bill cost estimation, every year. In Chapter 1 of the Casebook, statistics on the cost estimation of legislative bills on tax law revision were analyzed from multiple perspectives so that readers could easily understand the current status of cost estimation, and Chapter 2 includes 23 major cases by tax item among the cost estimation reports on legislative bills on tax law revision written by NABO in 2013 in order to help the understanding of and assist in the work by aides of lawmakers and public servants on cost estimation on tax law revision.
The ratio of tax revenue-related legislative bills with cost estimation reports attached that were proposed by lawmakers has dramatically increased to 60~70% in the 18th National Assembly and afterwards compared to the 17th National Assembly (36.6%). The cost estimation reports are written by NABO and lawmakers’ offices, and while the ratio of statements without attachment (without a clear statement of official cost estimation) by NABO is in decline, the ratio of those from lawmakers’ offices is maintained at a high level.
The analysis result of the current status of the reception of/replies to and the utilization of cost estimation of legislative bills related to tax revenue written by NABO and its relation with tax expenditure is as follows. First, as the legislative activity of the National Assembly has become more active, the number of cost estimation reports related to tax revenue written by NABO is on the rise. Second, 44.2% of the tax revenue-related bills with cost estimation reports by NABO attached were proposed in 2013, and, in the stages of review reporting and deliberation reporting on the proposed tax revenue-related bills, the ratio of reports quoting the cost estimation report by NABO was high at 60.0% and 75.0%, respectively, in 2013. Third, among the tax-revenue related bills with cost estimation reports by NABO attached (181 bills) in 2013, 106 bills (58.6%) were related to the revision of tax expenditure clauses including on non-taxation/tax-cut, etc.
It is planned that cost estimation reports will be written solely by NABO, and it will also become mandatory to attach cost estimation reports to amendments to bills by committees and bills proposed by committees from 2015 as the ｢National Assembly Act｣ was revised to improve the effectiveness and credibility of the cost estimation system in Mar. 2014. In this regard, NABO will support the execution of the revised National Assembly Act as planned and will play a more active role in developing alternatives to improve the effectiveness of the cost estimation system.
The ratio of tax revenue-related legislative bills with cost estimation reports attached that were proposed by lawmakers has dramatically increased to 60~70% in the 18th National Assembly and afterwards compared to the 17th National Assembly (36.6%). The cost estimation reports are written by NABO and lawmakers’ offices, and while the ratio of statements without attachment (without a clear statement of official cost estimation) by NABO is in decline, the ratio of those from lawmakers’ offices is maintained at a high level.
The analysis result of the current status of the reception of/replies to and the utilization of cost estimation of legislative bills related to tax revenue written by NABO and its relation with tax expenditure is as follows. First, as the legislative activity of the National Assembly has become more active, the number of cost estimation reports related to tax revenue written by NABO is on the rise. Second, 44.2% of the tax revenue-related bills with cost estimation reports by NABO attached were proposed in 2013, and, in the stages of review reporting and deliberation reporting on the proposed tax revenue-related bills, the ratio of reports quoting the cost estimation report by NABO was high at 60.0% and 75.0%, respectively, in 2013. Third, among the tax-revenue related bills with cost estimation reports by NABO attached (181 bills) in 2013, 106 bills (58.6%) were related to the revision of tax expenditure clauses including on non-taxation/tax-cut, etc.
It is planned that cost estimation reports will be written solely by NABO, and it will also become mandatory to attach cost estimation reports to amendments to bills by committees and bills proposed by committees from 2015 as the ｢National Assembly Act｣ was revised to improve the effectiveness and credibility of the cost estimation system in Mar. 2014. In this regard, NABO will support the execution of the revised National Assembly Act as planned and will play a more active role in developing alternatives to improve the effectiveness of the cost estimation system.