
Korea will collect 59.1 trillion won ($44.5 billion) less in tax this year than initially estimated due to dwindling corporate profits and the downturn in financial markets.
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The Ministry of Finance and Economy said Monday this year’s tax income will come at 341.4 trillion won, down 14.8 percent compared to the initial projection of 400.5 trillion won.
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The shortfall is attributed to falling tax revenues in the first six months as export-oriented Korean companies like Samsung Electronics and SK hynix took a hit from sluggish demand for chips and electronic devices.
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The government could tap into last year’s budget surplus and the ministry’s own funds as resources to make up for the shortfall, the ministry said, instead of asking for a supplementary budget.
BY PARK EUN-JEE [[email protected]]