March 21, 45 years ago still remains etched in the memory of the Korean people.
That day, the historic law “On Completely Abolishing Taxation” was adopted at the Third Session of the Fifth Supreme People’s Assembly of the DPRK, with the result that the people’s dream of living in a tax-free world came true.
After its liberation in August 1945, Korea repealed the predatory tax system set up by the Japanese imperialists, and established a people-oriented, democratic tax system and reduced the tax burdens of the people systematically with the development of the independent national economy. Between 1964 and 1966, the system of agricultural tax in kind was totally eliminated, and the remaining income tax and local taxes disappeared completely several years later.
In fact, the DPRK was short of funds because of the prevailing situation, the enforcement of the universal 11-year compulsory education and the campaign for fulfilling the six-year plan for national economic development. However, it made a bold decision on abolishing the tax system.
Kim Jun Gak, a workteam leader of the equipment assembly workshop of a construction company under the then Kim Chaek Iron Works, said: We were greatly excited at the abolition of tax system, a leftover from the old society, not because we were released from heavy tax burdens but because we became the glorious people who were completely emancipated from tax burdens for the first time in the world.
The total abolition of taxation was the most people-oriented policy to ensure that the people lead an independent and creative life as the masters of nature and society, free from all kinds of subjugation.
Today, the Korean people, from the cradle to the grave, live under the continuous benefits of the country, without understanding the word tax.
Thanks to the systems for free education, free medical care, nursing and upbringing of children, accommodation at health resorts and holiday homes at State expenses, State social insurance and social security, social benefits granted according to occupations including teacher, scientist and miner, and distribution of dwelling houses free of charge, they lead happy lives.
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