[Economy Pick] "Realization of declared price" Stop!only market fluctuations

[Anchor]
The second keyword, 'Realization of the declared price', stop!...Only changes in the market!

So, do you mean that the declared value ratio remains the same and only changes in the real estate market price affect the declared value?

[Reporter]
Yes, in a word, we will freeze the market price reflection rate to reflect only market price fluctuations.

In other words, it means that we will not implement the "real estate disclosure price realization plan" created during the Moon Jae In government in 2020.

The official price is the standard for holding tax, including the comprehensive real estate tax, and also for social welfare such as health insurance premiums and basic pensions,
Because
is so different from the actual price, that is, the market price, the plan is to raise the ratio step by step to 90% by 2035.

So the plan was to use it as part of stabilizing housing prices by putting a lot of tax burden on people who own real estate,
This means that
will not apply this next year.

According to the original realization plan, 78.4% of apartment houses, 66.8% of standard houses, and 80.8% of standard land were to be applied next year, but this will be frozen to apply the same rate as this year.

[Anchor]
Why is the market price reflection rate frozen like this?

In short, it is to relieve the tax burden on the people, or more precisely, on the property owners.

If the official price rises too significantly, the holding tax burden will increase, and the damage will also increase in terms of welfare benefits.

It can also be seen as one of the government's tax cut policy stances, which is seeking to revise the Real Estate Disclosure Act to abolish the previous government's plan to realize the official price, but the revision has not yet been completed.

Therefore, next year, it was frozen under the discretion of the Minister of Land, Infrastructure and Transport.

The official price for next year will be set at the beginning of next year to reflect real estate prices at the end of this year, with standard land and standard housing set in January next year and apartment houses set in April next year.