Category Taxation In Asia

Tax Needed for Korean Unification

August 16, 2010 Taxation in North KoreaTaxation in South Korea

Dancing Girls of the NorthA new tax could be instated in South Korea to pay for the potentially exuberant costs of one day reunifying the country with its Northern counterpart.

In a speech commemorating the 65th anniversary of Korea’s liberation from Japanese occupation, Lee Myung-bak, President of South Korea, restated that reunification between North and South Korea will definitely come between. However, the process could cost as much as USD 1 000 billion, and fiscal steps need to be taken now to ensure its future economic viability. Lee Myung-bak has proposed that a new “unification tax” be levied to cover the expected costs. The President stated that a panel of experts will soon begin discussions on the nature of the “unification” levy, its rate, and the tax’s balance between the two nations...

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IMF Backs Japanese Prime Minister on Tax Reform

July 15, 2010 Taxation in Japan

Asia21_026Japanese taxpayers could experience a significant increase to the national Sales Tax rate in the near future, after the International Monetary Fund called for fiscal reforms.

Japan’s political climate has been turbulent recently following the Prime Minister’s Sales Tax rate hike proposal. Naoto Kan claimed that a doubling of the current 5 percent Sales Tax rate would be an ideal step in addressing the nation’s ballooning debts, which have reached 218 percent of GDP. The tax issue was seen as a significant reason behind Naoto Kan’s political party suffering a defeat at the recent Japan Upper House elections...

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Tax Hikes Reason for Japanese Election Loss

July 12, 2010 Taxation in Japan

Korea-Japan summit talks in Toronto, CanadaJapan’s ruling political party has suffered a major setback in its plan to instate tax hikes, after experiencing a defeat at the national Upper House elections.

According to media exit-polls, the Democratic Party of Japan (DPJ) has won fewer than 50 seats of the contested 121 seats in the Upper House Government elections, held on June 11th. The result has been attributed to the party’s proposal of doubling the national sales tax rate to a level of 10 percent. The DPJ previously stated that it was aiming at attaining at least 54 seats. Official election results, scheduled for release by June 13th, are expected to confirm that the DPJ will hold a maximum of 110 seats of the total 242 Upper House seats.

Naoto Kan, Prime Minister of Japan and DPJ leader, has stated that he intends to stay ...

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Japan Considering Sales Tax Hike

June 21, 2010 Taxation in Japan

Watermark on Japanese 10,000 Yen Note, Macro PhotoThe Japanese Government is considering doubling the national Sales Tax rate, in order to curb the national public debt while retaining current levels of public services.

Late last week Japanese Prime Minister Naoto Kan declared the need for the Japanese Government to carryout comprehensive reforms to the nation’s tax system and drastic cuts to public spending, and called opposition parliamentary members to join in supporting his proposal. Naoto Kan also revealed that he is willing to consider doubling the current 5 percent national Sales Tax.

The Prime Minister revealed that an exact tax rate will be finalized by March 2011, and for the purposes of initial investigations, the 10 percent rate will be used as a “reference point”...

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OECD Release Economic Survey of Korea

June 16, 2010 Taxation in South Korea

Korean cashThe Organization for Economic Cooperation and Development (OECD) has released its bi-annual economic survey of Korea, which praises the nation for its strong recent economic performance, and recommends areas with potential for long and mid-term improvement.

On June 15th the OECD released Economic Survey of Korea 2010, the latest economic analysis of the nation. The report commends Korea for having one of the strongest post-2008 recoveries in the OECD, which was attributed to outstanding export performance and the largest fiscal stimulus package among OECD-member states. The publication consists of four sections addressing potential issues faced by the Korean economy.

According to OECD projections, the Korean economy will expand by 5.75 percent in 2010, and 4.75 percent in 2011...

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