Lee Myong-bak’s Tax reform policy named " tax that will save the economy and the people”

1. scrap or integrate tax items by half (from current 30 to 14: 9 national taxes and 5 provincial taxes)

2. transparent and stringent taxation

: introduce two-year-term for NTS head
: increase fines on tax delinquency from existing 40 per cent of delinquent tax to 100 per cent
: focus on preventing tax evasion
: tax probe should be executed in a fair and strict way

3. tax policy aimed to create jobs

: reduce corporate tax from the maximum 25% to 20%
: reduce tax for mid-sized firms
: expand tax base and reducing income tax rate
: give tax benefit for science and technology R&D
: eliminate or incorporate 100 various ‘quasi-taxes’

4. tax reduction to help people’s livelihood

: expand tax deduction for house buying/education cost/medical expenses
5. cut oil tax to protect people’s livelihood
: reduce oil tax by 10 per cent
: LPG tax exemption for taxi and cars owned by the disabled

6. reasonable management of property-related tax

: combine registration and acquisition taxes
: reduce property tax and transfer income tax for owners who has one house for a long period of time
: the longer people own a house, the smaller transfer income tax should become