The law "On Abolishing the Tax System" was adopted at the Third Session of the Fifth Supreme People's Assembly of the DPRK in Mar 1974. And it has been enforced from April 1, 1974.
Thanks to this law, the DPRK became the first country free from tax in the world.
It was the firm determination of President Kim Il Sung as well as the long-cherished desire of the Korean people to get rid of taxation.
The Workers' Party of Korea and the DPRK government abolished the depredatory tax system of the Japanese imperialists by embodying the Juche-oriented tax programme, which was provided in the period of the anti-Japanese revolutionary struggle and concretized in the Twenty-Point Platform after Korea's liberation, and established a popular and democratic tax system.
They reduced the tax burden of residents systemically according to the provision of foundation of the self-supporting national economy.
After the Fatherland Liberation War, the tax system gradually lost its significance in economic life of the country as the socialist transformation of the relations of production was completed and the foundation of socialist industrialization was firmly laid.
The DPRK government completely abolished the agricultural tax in kind between 1964 and 1966 in accordance with the matured conditions and possibilities.
As a result, only income tax and rates of local autonomy were left in the country, but they were insignificant in the state budgetary revenue.
The development of the socialist system and the strengthened might of the independent national economy in the country provided guarantee for abolishing the tax system.
The complete abolition of the tax system was an unprecedented, popular policy in human history.
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