The amount of non-tax revenue—including fines, penalties, and various charges—that the government failed to collect or gave up on collecting surpassed 38 trillion won last year. This figure has ballooned by 12 trillion won in the span of just one year. Furthermore, the collection rate for non-tax revenue dropped to its lowest level in a decade.

According to data submitted by the Ministry of Economy and Finance, the National Tax Service, and other agencies to Representative Kim Sang-hoon of the People Power Party’s National Policy Committee on the 20th, the total levy decision for non-tax revenue last year reached 301.9 trillion won. However, the amount actually collected stood at only 263.4 trillion won. Uncollected revenue amounted to 36.1 trillion won, while uncollectible amounts written off from the ledger stood at 2.4 trillion won. Combined, the uncollected and written-off amounts totaled 38.5 trillion won.

Surging by 12 Trillion Won in a Year... Collection Rate Hits 10-Year Low

The performance of non-tax revenue collection deteriorated markedly compared to the previous year. Uncollected amounts escalated from 25.1 trillion won in 2024 to 36.1 trillion won last year, marking an increase of 11 trillion won (44%). Uncollectible write-offs also grew by 1 trillion won, rising from 1.4 trillion won to 2.4 trillion won over the same period. Combined, the two categories swelled from 26.5 trillion won in 2024 to 38.5 trillion won last year—a jump of 12 trillion won.

The collection rate, which represents the proportion of actual revenue collected out of the total amount decided by the government, stood at 87.2% last year. This is the lowest level since 2016. Looking solely at uncollected amounts, the figure grew approximately 2.6-fold from 13.7 trillion won in 2016 to 36.1 trillion won last year.

Non-tax revenue refers to government income generated from sources other than taxes. Representative examples include fines, surcharges, various levies, and user fees for state-owned properties. Even when the government decides to impose these charges, failure to make actual payments leaves them as uncollected amounts, while sums deemed no longer collectible are processed as uncollectible write-offs.

Fines and Penalties Also Left Unpaid: National Police Agency Exceeds 1 Trillion Won

By category, uncollected revenue issues were particularly prominent in incomes related to legal violations, such as indemnities, fines, confiscations, and penalties. Last year’s uncollected amount for current transfers, excluding fund revenues, reached 21 trillion won. Current transfers include revenues received without providing separate goods or services, such as damages, fines, confiscations, and penalties.

By government agency, as of the end of last year, the National Police Agency's uncollected amount for fines, confiscations, and penalties stood at 1.1053 trillion won. The Korea Customs Service recorded 6929 billion won in uncollected additional charges, while the Fair Trade Commission registered 4376 billion won in uncollected fines and penalties. This reflects a persistent failure to collect even the financial sanctions imposed for legal violations.

National Tax Service's Additional Charge Collection Rate at 1%; Long-Term Arrears Hinder Recovery

Collection performance remains sluggish for additional charges levied when taxes are not paid within the deadline. Last year, the National Tax Service decided to levy approximately 15.7 trillion won in additional charges, but actual collections amounted to a mere 17.65 billion won, yielding a collection rate of just 1%. Out of these additional charges, 1.2474 trillion won was written off as uncollectible due to reasons such as the expiration of the statute of limitations. As of July this year, approximately 700.8 billion won has reportedly been processed as uncollectible write-offs.

The National Tax Service explained that recovering these funds is difficult because most of the uncollected additional charges consist of long-term arrears that occurred prior to institutional reforms. Following a 2020 tax law revision, national tax additional charges were converted into overdue payment surcharges, leaving existing additional charges primarily tied to allocations from before 2019. Consequently, the longer the delinquency period, the harder it becomes to track assets and recover funds.

An official from the National Tax Service explained, "Most uncollected additional charges are long-term delinquencies generated before the 2020 system overhaul, making them less recoverable as time passes. Even if delinquent amounts are collected, compulsory collection expenses and national taxes must be covered first before remaining funds can be applied to additional charges, rendering recovery even more difficult."

Integrated Collection Organization Launched; Overhaul of Collection System Pursued

To curb non-tax revenue arrears, the government has set out to establish an integrated collection system. The National Tax Service launched a preliminary task force for the integrated collection of non-tax revenues this year, verifying the status of delinquent taxpayers over a three-month period from July to September and collecting approximately 82.7 billion won. The task force operates as a temporary organization until the end of this year, and is expected to transition into a permanent organization once the Integrated Collection Act is enacted.

Representative Kim Sang-hoon remarked, "Even though uncollected state funds have exceeded 38 trillion won and surged by 12 trillion won in a single year, the government has effectively turned a blind eye to collection management. Failing to collect even fines and penalties goes beyond fiscal leakage and strikes at the heart of trust in law enforcement. We must examine the causes of uncollected funds by category and completely overhaul the collection system."

[ⓒ Global Economic Times. 무단전재-재배포 금지]