BUSAN, Apr. 21 (Korea Bizwire) — The city of Busan is expecting an additional 218.35 billion won (US$ 201.47 million) for its estimated 2014 tax revenues, due to an increase in cigarette tax revenues caused by citizens’ buying spree before the New Year’s cigarette price hike, even though Busan’s population of non-smokers has since increased.
According to the Busan Metropolitan City’s statement on April 20, cigarette tax revenues for 2014 were 15 billion won (US$ 13.85 million) higher than the estimated revenues. The total tax revenues estimated reached 3.31 trillion won (US$ 3.05 billion), which is seven percent higher than the original estimation.
The city expects that there will be revenue increases for each of the 10 taxes currently imposed. For instance, revenues from acquisition tax and license tax are expected to reach 1.77 trillion won (US$ 1.63 billion) and 5.87 billion won (US$ 5.41 million) respectively, higher than the original estimates, due to the results of the Korean government’s efforts to boost property markets.
Revenues from local income tax are estimated to reach 480.99 billion won (US$ 443.82 million) due to increases in property purchases and individual wages. Revenues from local consumption tax will also reach 476.69 billion won (US$ 439.95) which is 2.6 billion won (US$ 2.39 million) higher than the original estimate.
City officials said that the local government will be able to compensate for the 2013 deficit if the property market continues its revival this year.
By John Choi (email@example.com)