THE country’s economy is running from the proceeds of tax collected from individuals and the companies.
The 75% of the national financial plan is from the tax, whereas 25% is from other things.
The different taxes we pay are:
- Resident companies, 30%;
- non-resident companies pay up to 48%;
- individuals generally pay 15% from salary and wages;
- No exception for married men and women, both pay the same rate, so for a couple living together they are paying a total of 30%; and
- Value Added Tax or Goods and Service Tax is 10%.
The general opinion is that there are not many jobs going around because companies are paying too much tax.
It would be much better if the company tax rate is reduced from 30% for resident companies to 15%, and the non-resident reduced to 33%, with conditions.
One of the conditions for reducing the tax rate could be that the companies employ more people whose taxes would then make up for lost revenue created by the reduction in company tax.
We can also require the Members of Parliament to pay full taxes on their salaries and allowances.
By reducing taxes charged on companies we can attract more investment and help generate employment.
Saki Anori Mikaive
Kwonggi No#: 1