The bill cost estimation system that was reinforced in 2006 requires each bill to have an attached estimation report on the revenue or expenditure changes if any legislation accompanies it. This works as a substantial and powerful tool to connect the effect of a bill to national finance management. Revenue cost estimate is important since it not only provides information for the bill itself, but also for the yearly budget proposal assessment by the National Assembly. Considering this significance, efforts to improve the accuracy of estimation are meaningful.
    This casebook presents methods to perform cost estimation for tax bills that NABO developed while processing approximately 770 cases after NABO’s establishment in 2003. The first part of the book overlooks the brief history and statistics of bill cost estimation. The next part contains methods of cost estimation. These are explained according to each category of tax bills such as tax rate change, modification of tax deduction or exemption, changes in indirect tax, etc. The last part provides examples of accumulated estimate reports for reference purposes.
    Although each bill cost estimate requires different data and a different approach for its eccentricity, methods that are introduced here contribute to better estimates being produced in less time. We hope this book will make a good reference for aides of assemblymen who prepare cost estimates for tax bills, and promote further research to improve methodology for this field.

Revenue Estimates Division