© Reuters. FILE PHOTO: The skyline of central Seoul is seen throughout a foggy day in Seoul March 4, 2015. REUTERS/Kim Hong-Ji
SEOUL (Reuters) – South Korea has sharply lowered official reference housing costs for this yr, which is able to lead to a big fall in taxes for owners, as the federal government has been making an attempt to place a ground below slumping property costs.
The finance ministry stated on Wednesday the reference costs, on which property taxes are calculated, have been set 18.6% decrease than final yr on common – the quickest drop for the reason that system was launched in 2005.
Because of this, property taxes on owners will seemingly be decreased by between 29% and 39% from final yr, the ministry stated, citing its simulation for single home-owners. A number of home-owners normally pay heavier taxes.
The ministry stated the drop in reference costs was partially a results of the just lately falling housing costs, which official knowledge exhibits have fallen for the previous 9 consecutive months amid rising inflation charges and a cooling financial system.
The federal government has taken a sequence of measures to tame the tempo of declines in housing costs to avert a tough touchdown of the property market.