▪ Tax revenue in the first half (H1) of 2024 was 168.6 trillion won, down 10.0 trillion won (-5.6%) from a year earlier.
▪ The monthly performance trend shows a year-over-year (YoY) increase from January to February, but a YoY decrease from March.
▪ By tax category, reported corporate tax, comprehensive income tax, and earned income tax, etc. decreased YoY.
▪ Meanwhile, value-added tax, withheld corporate tax, and interest income tax, etc. increased YoY.
▪ With tax revenue weakness likely to persist from H1 to H2, additional downside risks could further deteriorate tax conditions in H2.
▪ Tax revenue in 2024 is expected to see a substantial deficit, considering the level of the budget and tax revenue conditions in H2.
▪ At a time when large tax revenue deficits are expected, the government needs to increase public announcements and prepare measures to respond quickly to fiscal management based on the early warning system.
▪ Need to strengthen discussions with the National Assembly in response to large tax revenue deficits