One spring day on the 21st of March 1974 some 52 years ago ,the Democratic People’s Republic of Korea (DPRK) passed the Law on the Abolition of Taxation which declared ;
“1. The tax system, a vestige of the old society, shall be abolished completely,
2. The Administration Council of the DPRK shall take measures to implement this law, and
3. The law shall be effective from April 1, 1974”
The agricultural tax in kind ,which was paid by farmers ,had already been abolished in the period 1964-1966 . It had been decided at the 4th Congress of the Workers Party of Korea in 1961 to abolish taxation . As the share of taxation in state revenue dwindled to only 2 per cent , the abolition of taxation in the DPRK became the order of the day . President KIM IL SUNG said that
" To abolish the tax system is a revolution to free the working people from these vestiges and a great change to meet the centuries-old desire of the people.
The system of taxation which came into being with the emergence of the state, has been used in a class society for thousands of years as a means of preserving the ruling machine of the governing classes and plundering the working people."
Thus the DPRK ended taxes on the incomes of working people at one stroke . Nowadays in the UK taxes rise all the time , particularly council tax . My council tax has increased by 62 per cent over the last 10 years .
Not only did the DPRK abolish taxes , something truly remarkable in itself but it also cut prices at the same time time . The prices of some 21,800 kinds of manufactured goods were reduced by 30 per cent on average and 50 per cent at the maximum . This was truly amazing and phenomenal . Both the abolition of taxation and the reduction of prices gave the Korean people huge monetary benefits . The living standards of the Korean people improved greatly .
In Britain where prices are going up all the time and there is talk of higher energy and higher food prices therefore the idea of reducing prices by up 50 per cent seems quite unthinkable but in People’s Korea with its Juche-based ,independent , socialist planned economy it became a reality ,not a distant dream .
With regard to the abolition of taxation President KIM IL SUNG said
“ The abolition of the tax system in our country is the brilliant victory of the great Juche idea as well as a demonstration of the incomparable advantages of our socialist system which is the embodiment of the Juche idea and the great capability of our socialist independent national economy.
Thanks to the immortal Juche idea and its brilliant victory, our people are being provided with a richer, independent and creative life in the socialist land of happiness, where there is no exploitation, oppression or taxation”
This sums up the great significance of the abolition of taxation in People’s Korea.
Indeed People’s Korea is a tax free socialist paradise !
Long live People’s Korea !
Dr Dermot Hudson
Chairman Korean Friendship Association of UK
Chairman British Group For The Study of the Juche Idea
Hon General Secretary Global Farmy Study for KIM JONG UN’s People First Policies
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