Deputy Prime Minister vows not to raise tax due to weak economic structure

Deputy Prime Minister vows not to raise tax due to weak economic structure. January. 23, 2015 07:05. .

Choi Kyung-hwan (photo), the deputy prime minister for economic affairs and the minister of strategy and finance, said, “The government won’t raise tax. It is not empirically verified that tax is increased by raising tax rates.” Ruling Saenuri Party Chairman Kim Moo-sung also drew a line by saying, “(Controversy over the year-end tax settlement scheme) is not a matter to be connected to tax increase.”

In an exclusive interview with the Dong-A Ilbo at the Central Government Complex in Seoul, Deputy Prime Minister Choi emphasized, “If the government raises tax when the fundamental structures of the Korean economy is vulnerable, the economy would not revive but become sluggish further. When the domestic economy recovers, tax will be increased accordingly.”

“This year, the government will accomplish structural reforms not only by vitalizing the economic sentiment but also by transforming fundamentals of the domestic economy,” said Choi, expressing his strong commitment for economic reforms. “Knowing the painstaking structural reform is needed to revive the Korean economy, previous vice prime ministers have postponed (the reform). Now, the economy is on the point of festering. Even though I am blamed, I will pursue what I have to do."

The vice prime minister, who once said he joined the politics to change the economy, spoke bitterly about the politics. “Only fraction of the problems can be resolved by the government alone. The issues that the nation is facing are getting more and more complicated, but the politics’ capability to fix a problem is getting worse,” he pointed out. The comment came amid criticism that the politicians failed to show capabilities to solve problems but intensified the controversy over the tax settlement scheme.

About the past six months since his inauguration, Vice Prime Minister Choi said, “I took office when the sunken ferry Sewol disaster dampened the economy. The past months were challenging as many people had certain expectations. I have struggled not to blow out flickering flame of hope during those days.” On the economy team lead by himself, the minister sais, “The team works hard in strict order under the motto of ‘One Team, One Spirit.’”