History

DPRK, a Tax-Free Country

Today, many countries are advocating an “advanced state” and a “welfare state”.

They are collecting taxes from the people under different pretexts, whose kinds are on the increase. After all, greater burdens are imposed on the people as the days go by.

But there is the only tax-free country on the earth. It is the Democratic People’s Republic of Korea centred on the people.

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These pictures show the then working people wrapped in joy upon the news of the historic law “On Completely Abolishing the Taxation System” which was adopted at the Third Session of the Fifth Supreme People’s Assembly of the DPRK on March 21, 1974.

The work to establish a popular and democratic tax system in the DPRK was actively done after liberation from tens of-year-long colonial rule of the Japanese imperialists in 1945.

Afterwards, as the foundation of the independent national economy was laid, the DPRK government powerfully pushed forward the work to systemically relieve the people of their tax burdens and thus completely abolished the system of the agricultural tax in kind between 1964 and 1966. So the income tax and the rates of local autonomy alone remained in Korea, which were, in fact, trifling in the state budgetary revenue.

Some years later, the law on completely abolishing the taxation system was adopted for the first time in history.

At that time a tense situation was created in the DPRK due to the constant war provocations of the hostile forces. Meanwhile, active efforts were being made to enforce the universal 11-year compulsory education and attain 10 goals of the socialist economic construction.

Therefore, much fund was needed for the defence upbuilding and economic construction. But the DPRK government completely abolished the taxation system, the hangover of the old society, as it gave top priority to the interests of the people.

The complete abolition of the taxation system gave a big impact to the world.
Concerning it, foreign dispatches said:

“The DPRK is a tax-free country. The Korean people don’t know tax itself.”

“The abolition of the taxation system is an expression of love for the people of President Kim Il Sung who regarded it as his lifelong motto to believe in the people as in heaven. The complete abolition of the taxation system in socialist Korea enjoyed support and admiration of the progressive people. People in the capitalist countries who are troubled with taxes would not even think of such a good policy.”

The abolition of the taxation system in socialist Korea was a popular policy unprecedented in history; it was a powerful demonstration of the superiority of the socialist system of Korea.

Categories: History, Narrated

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