Chip tax windfall review begins, raising budget debate for next year

The Blue House began reviewing on the 13th how to use excess tax revenue expected from the semiconductor boom. The move comes as political debate grows over the “citizen dividend” proposed by Presidential Policy Chief Kim Yong-beom, and as forecasts point to a sharp rise in government tax revenue from surging operating profits at Samsung Electronics and SK hynix. According to the Blue House, Kim recently instructed fiscal planning adviser Ryu Deok-hyun and others to examine possible uses, while Ha Jun-kyung, senior secretary for economic growth, is also taking part. Business groups, civic organizations and economists are divided over whether the revenue should support reinvestment, redistribution or fiscal soundness. The issue is expected to emerge during next year’s budget drafting, which begins in earnest next month. Source: rss.donga.com