his report investigates local tax systems of Korea and Japan, and shows policy implications to the local tax reforms of Korea. The main contents are the comparison of the local tax structures, the elasticities of tax burden to GDP using time series data, the elasticities of local tax revenues to gross regional domestic product or GRDP, and the growth rate and the stability of main taxes at upper- and lower-level local governments of the two countries. In addition, the report builds a simple model to estimate the relations between local tax burden and local public services.
Local tax revenues in Korea are mainly obtained from the transaction property taxes such as acquisition tax and registration tax at upper-level, and mainly obtained from tobacco consumption tax, automobile tax at lower-level local governments. On the contrary, tax revenues of local governments in Japan are collected from the income taxation such as inhabitant tax and enterprise tax that are highly influenced by economic circumstances. As a result, under the recent economic recession in Japan, their tax revenues have been very unstable, which has resorted to reform the enterprise tax and the inhabitant tax. The main issues on the local tax reforms in Japan are: 1) the introduction of the scale on business activities as tax standard to the enterprise tax on the purpose of collecting stable tax revenues , and 2) the introduction of proportional income tax to the inhabitant tax to satisfy benefit principle. (The rest omitted)
- 한일 지방세 구조와 세부담 특성비교(A comparative study of tax structure and tax burden of local governments between Korea and Japan)
한일 지방세 구조와 세부담 특성비교(A comparative study of tax structure and tax burden of local governments between Korea and Japan)
서울 : 한국조세연구원
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Economic Administration|