Definition of revenue estimation is to estimate tax revenue, keynote for national fi-nance. Precise estimation is essential so that the hard-earned taxes of our people can be used efficiently and wisely. Significance is strong enough to be stressed that change in revenue applied to revision of tax law, affects revenue estimation. In par-ticular, in depth research is necessary for the present moment when concerning voice is amplified for long-term fiscal deficit.
National Assembly Budget Office had recommended that revenue effect should be estimated by baseline method to cope with aim of National Finance Act in 2008. After this method was also reviewed in the administration, so that when estimating revenue effect, both year-on-year and baseline methods has been applied since 2010 revision of tax law.
In this report, we examined, on the basis of 2010 tax proposals, whether revenue estimation of executive branch was implemented by clearly reflecting accurate cost that can be occurred. Above all, by reviewing revenue effect on extension or termi-nation of sunset clause regarding tax-free or exemption, and by examining precise estimation on new options, we strived to estimate more accurate revenue effect in compliance with revision of tax law.
Under the structure of linked each household, there is going to be some level of distortion when examining macroeconomic effect by external change like revision of tax law. Therefore, it is vital to estimate on revenue effect by revised law in micro-economic way, for figuring out direct effect on the national finance. Regarding ana-lyzing budget statement for tax expenditure that is submitted to the national assem-bly from the present year, it is especially helpful for discussion to boost accuracy of effect on the options under sunset, in the revision of tax law.
National Assembly Budget Office had recommended that revenue effect should be estimated by baseline method to cope with aim of National Finance Act in 2008. After this method was also reviewed in the administration, so that when estimating revenue effect, both year-on-year and baseline methods has been applied since 2010 revision of tax law.
In this report, we examined, on the basis of 2010 tax proposals, whether revenue estimation of executive branch was implemented by clearly reflecting accurate cost that can be occurred. Above all, by reviewing revenue effect on extension or termi-nation of sunset clause regarding tax-free or exemption, and by examining precise estimation on new options, we strived to estimate more accurate revenue effect in compliance with revision of tax law.
Under the structure of linked each household, there is going to be some level of distortion when examining macroeconomic effect by external change like revision of tax law. Therefore, it is vital to estimate on revenue effect by revised law in micro-economic way, for figuring out direct effect on the national finance. Regarding ana-lyzing budget statement for tax expenditure that is submitted to the national assem-bly from the present year, it is especially helpful for discussion to boost accuracy of effect on the options under sunset, in the revision of tax law.