SEOUL, July 21 Reuters South Korea on Thursday proposed a series of tax cuts for companies, workers and retail investors in stocks to support privatesector led economic growth as President Yoon Sukyeol had pledged in the election campaign.
In his first annual tax code revision, the Yoon administration proposed cutting the maximum corporate tax rate to 22 from the current 25 and lowering the threshold for income taxes to put more salaried workers in the lower income tax basket of 15.
To revitalize the stock market that has slumped nearly 20 so far this year, the government proposed to exempt capital gains taxes on retail investments, except for holdings worth more than 10 billion won 7.63 million in any one stock.
Our goal is to revise tax codes to fit into the global standards, and to revitalize the market, businesses as well as markets, the finance ministry said in a statement.
A maximum corporate tax rate of 22 in South Korea would put it on par with the average of countries in the Organization for Economic Cooperation and Development OECD, which the ministry said will end up benefiting shareholders through dividends, and consumers through lower prices of products and services.
The annual revision comes as Asia39;s fourthlargest economy is bracing for slower growth this year as inflation threatens to become entrenched for a resourcepoor nation grappling with surging energy prices compounded by the war in Ukraine.
Exports in June grew at their slowest rate in 19…