CEOs call on next government to provide tax incentives for growth

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CEOs call on next government to offer tax incentives for growth (Yonhap)

Business leaders here have called on the next government to increase tax revenue by stimulating the economy rather than seeking corporate tax hikes, according to a survey by the Korea Chamber of Commerce and Industry released Sunday.

Of the 252 CEOs surveyed, 70% said economic growth should be a priority for the next government to revamp the country’s tax policy, calling for more tax incentives for businesses.

The CEOs urged lowering corporate taxes globally, expanding support for startups, differentiating tax benefits for Korean and foreign companies, and lowering inheritance taxes.

They also picked support for business restructuring (16.3%) and support for COVID-19 related losses (6.7%) as key factors to consider.

On corporate restructuring for digital transformation and carbon neutrality, 43.7% said the government should strengthen fiscal support for research and development and related infrastructure investment.

For COVID-19 related losses, 52.9% said tax incentives should be offered so they can employ workers or retain their workforce.

More than 70% of respondents said the government should only consider raising taxes after the economy recovers, while 4.4% said tax hikes were needed immediately.

“It seems inevitable that the government will spend more on social assistance in a context of falling birth rates and an aging population. The best social policy is based on steady business growth,” said a business lobby official. “The next government should come up with tax policies to support businesses rather than raising taxes for temporary effect.”

By Hong Yoo ([email protected])

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