Seoul - Yonhap
The government plans to sell its golf courses located in the Seoul metropolitan area, the finance ministry said Tuesday, in an apparent move to tackle the falling tax revenue. According to the Ministry of Strategy and Finance, the government plans to sell its stakes in two of its golf courses in Gyeonggi Province managed jointly by the Ministry of Patriots and Veterans Affairs and the Arts Council Korea. The finance ministry said it is expected to rake in 719.2 billion won (US$670.2 million) from the sell-off, adding to its revenue for 2014. Market watchers said the government\'s latest move to sell its properties came in line with its effort to expand the revenue base amid the protracted economic downturn. South Korea collected about 129.7 trillion won in tax revenue during the January-August period in 2013, down 5.8 trillion won from what was collected a year earlier, according to a separate data by the National Tax Service. Market watchers said the decline came as the weak corporate earnings made it difficult for firms to pay corporate taxes and as sluggish private spending also curbs the collection of indirect taxes, which account for more than 50 percent of the country\'s tax revenue. The government has been ramping up efforts to expand the revenue base to help finance its massive welfare projects. The state tax agency has also been seeking to crack down on tax evasion and the underground economic activities as part of such efforts.