Monday, 23 March 2015

Complete abolition of tax system in Korea

Complete abolition of tax system in Korea
  Tax is a kind of redistribution of income that the state makes individuals or collective pay obligatorily part of their income gratis to prepare fund necessary for the performance of its function. Such tax system was completely abolished in the Democratic People´s Republic of Korea.
  In Juche 34 or 1945 the great leader Kim Il Sung liberated Korea from the Japanese imperialists and saw to it that the capitalist social relations were liquidated and the progressive income tax was enforced as important means for the socialist transformation. In the meantime, the negative aspect of the capitalist economy was restricted in the cooperative economy and their socialist transformation promoted. Even after the establishment of the socialist system, tax was used as the additional source of the state financial income, the means to rationally readjust the income of various circles and the educational means to increase sense of citizen´s duty to the state. But with the socialist construction further promoted, the income from the national economy systematically increased and the ideological level of the working people was raised. As a result, the tax in the socialist construction gradually became insignificant. And the foundation of the socialist independent national economy was unprecedentedly strengthened, the state support to agriculture increased and the life of the working people by state expense fully ensured. Along with it, the working people´s devotion to the state and society was more fully displayed. The great leader Kim Il Sung completely abolished the agricultural tax in kind in Juche 55 or 1966 and adopted the historic law "On completely abolishing the tax system" at a session of the Supreme People´s Assembly held on March 21, Juche 63 or 1974, completely and finally abolishing all kinds of tax.
   Thanks to him, thousands of-year old desire of the people to free themselves from the burden of tax was brilliantly realized and Korea became the first tax-free country in the world.

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