Ruling party begins overhaul of tax systems

The ruling Grand National Party has begun an overhaul of tax systems.

Rep. Kwon Young-jin, an adviser to the party’s policy reform committee, told reporters Wednesday after an emergency committee meeting at the National Assembly, “We`ve decided to study and review the reform of tax systems, including taxing profits from share transfers, tax increases, and exemption from non-taxation benefits,” adding, “To this end, we`ll set up a subcommittee under the policy reform committee."

Following tax increases for the rich, the comment on taxing profits from share transfers is likely to stir up controversy over the imposition of capital income tax. Only major shareholders pay taxes for the profits they earn from the transfer of stocks.

Park Geun-hye, chairwoman of the ruling Grand National Party`s emergency committee, stoked controversy over the capital income tax late last year, saying, “Taxation on financial assets such as shares should be enhanced instead.”

Whether the tax reform plan will become a ruling party pledge for the April 11 parliamentary elections is uncertain. Kwon said, “Further research is needed on if we`ll make this a pledge for the parliamentary elections or conduct in-depth review to make it a presidential election pledge."