Finance Minister Choi Sang-mok said Thursday that South Korea is unlikely to suffer a shortfall in tax revenue this year as the economy is expected to strengthen.

Choi made the remarks in answer to the question if recent tax relief measures would further worsen the state’s financial status, as tax revenue fell nearly 50 trillion won (US38.14 billion) during the first 11 months of last year from a year earlier amid an economic slowdown.

“The situation is quite different this year. I think we don’t have to have such concerns this year,” Choi said in an interview with public broadcaster KBS.

“Tax revenue has been growing since the fourth quarter of last year, and the government expects a virtuous cycle, as an expected economic recovery would boost the country’s tax base,” he added.

The extension of the tax cut on fuel consumption and other measures will have little impact on the total tax revenue, according to the minister.

The finance ministry expected the economy to grow 2.2 percent this year on the back
of a rebound in the semiconductor cycle and a recovery of exports, accelerating from last year’s 1.4 percent expansion.

Speaking of inflation, Choi vowed various policy efforts to curb expected inflation among producers and importers to bring prices under control.

Inflation is projected to be 2.6 percent in 2024, compared with last year’s 3.6 percent, the ministry said.

Source: Yonhap News Agency