SEOUL– Prime Minister Han Duck-soo on Friday instructed the finance ministry to come up with supplementary measures on a tax code revision, as the revised tax code fell short of the government’s initial plan.

“It is very regrettable that the contents of the government’s original plan were not fully reflected in the parliamentary deliberation process,” Han told an extraordinary Cabinet session that approved the revised tax code.

“The relevant ministries, including the Ministry of Finance and Economy, should seek supplementary measures that are needed for the revitalization of the people’s livelihood and the economy,” Han said.

The scope of corporate tax cuts was one of the key sticking points when the ruling People Power Party (PPP) and the main opposition Democratic Party (DP) had been in negotiations to approve next year’s budget bill.

The PPP and the DP eventually agreed to cut the corporate tax rate by 1 percentage point, which would bring the highest tax rate of 25 percent down to 24 percent.

The government and the PPP had initially called for a 3 percentage-point cut, claiming the country’s high corporate tax has hampered investment by major companies.

Other revised tax codes on investment and stock trading also failed to meet the government’s initial plans.

Han asked the Cabinet to make utmost efforts for next year’s budget to be implemented immediately after the start of the next fiscal year.

Source: Yonhap News Agency