NORTH KOREAN TAXES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A003901010007-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 19, 2016
• Sequence Number: 7
• Content Type: REPORT

Approved For Release 2006/11/14: CIA-RDP80-0081OA003901010007-9
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
CONFIDENTIAL
COUNTRY Korea
SUBJECT North Korean Taxes
This Document contains information affecting the Na-
tional Defense of the United States, within the mean-
ing of Title 18, Sections 793 and 794, of the V.S. Code, as
amended. Its transmission or revelation of its contents
to or receipt by an unauthorized person is prohibited
by law. The reproduction of this form is prohibited.
REPORT
DATE DISTR. 15 April 195+
NO. OF PAGES 2
REQUIREMENT NO. RD
REFERENCES
THE SOURCE EVALUATIONS IN THIS REPORT ARE DEFINITIVE.
THE APPRAISAL OF CONTENT IS TENTATIVE.
(FOR KEY SEE REVERSE)
As o$" June 1953 the following taxes were being levied by the North Korean
io ernment in Chongsong-gun:
a. TTM in-kind. A 27 percent tax on rice crops, and 23 percent on other
in crops was levied annually.
b. people's Self-Governing Tax. At the end of each year each farmer was
required to give the government grain to cover his tax-in-kin)d and seed
requirements for the following year. In addition he had to ploy a one
percent tax on the value established by the government for the amount of
grain required to supply 600 grams of food per day for each member of his
family during the coming year. Any surplus grain was valued at the market
price and on this the farmer was'also required to pay a one percent tax.
e. Tax-in-Kiha Estimates Committee Fund. Each household was required to con-
tribute 0 on per year to this un4, whicba was used to support the local
tax-in-kind estimates committee.
d. Meat c s i Fund. The purpose of the fund was to provide meat for the
North Korea army. Each farmer was required to contribute to the fund at a
rate determined by the amount of tax-in-kind he paid. Under this system
the government purchased from the farmer, at 60 to 70 won per kilogram.,
beef and pork which was worth 240 won per kilogram. The difference con-
stituted the farmer's contribution to the meat purchasing fund. Each pig
or cow was examined by a veterinary before the government made a purchase.,
and only old cows and pigs, useless for breeding' were bought. Farmers were
financially liable when livestock died on the trip to the veterinary.
e. . -Caact''~Tax. An annual tax was levied on all farmers owning ox-carts. The
carts were inspected by the government once a -3lear.
CONFI7i!i7
STATE
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CONFIDENTIAL
f. School Fund. Each North Korean village was required to support its own
schools, including the purch ae of supplies and equipment, and, as a
result, every household had to contribute 'to the school fund, regardless
of whether it had. children or not. The amount of each family's contribution
was recommended by the school principal, who submitted his recommendations to
the chairman of the school association. The figures were then sent to the
heads of both the village People's Committee and the locall. Korean Labor
Party (KLP) committee, and then forwarded to the gun officials for approlva:1.
The recommendations were usually approved without change. The fund was
collected at the beginning of each school year. Funds assessed from house-
holds in an average village ran from 100 - 5,000 won.
g. North Korean Ara "Consolation" Fund. Since the organization of the North
Korean army in February 1948, contributions for a "consolation" fund ft.)r
the army had been solicited annually. These drives, which were sponsored by
the Women's Association, were generally held on 7 February (North Korean.
Army Founder's Day), 1 May, and 15 August. .Each household was assigned an
amount which it had to contribute, but often was forced to give more than its
assigned quota. Farmers were usually required to contribute from 400 to 1, 500
won to this fund.
h. Village Administration Fund. This fund was collected in each village annual];,,,
in order to support the staff members of the. village People's Committee. Eac,7:j
household was required to contribute from 50 to 300 won, under a plan drawn,
up by the staff members of the People's Committee, the local KLP commi-,Utee, and
various social organizations.
i. Poor Relief Fund. This fund was collected on a local basis by each village
annually, in order to provide assistance to needy families. Each household
was required to make a specified contribution to the fund., usually in the
form of food. There was much criticism of the fund because in many inet;ana?es
the recipients of relief from this fund were employees of the KLP who did riot
have regular jobs.
People's TeamFund. Each household was required to pay 50 won per year to
maintain a fund for the support of the.local .people's team. Office supplies
and other materials for the team were purchased out of this fund.
k. "Consolation" Fund for Model Soldiers. The ostensible purpose of this fund
was to "console honored North orean.%army soldiers sent to the rear from the
frontlines. Actually, however., it was designed .to finance a huge feast which
was held in honor of four or five. soldiers. sent to each village to spread
propaganda for the army. These "model" soldiers gave speeches praising army
life, and gave assurances that the North Korean army was really supporting
the people. Each farmer was required to contribute from 50 to 500 won
annually to this fund, which was usually collected on North Korean army
Founder's Day.
Patriotic Rice. Each community sponsored an annual drive to collect
"patri"otic rice" to give to the government, with local KI*P.members playing
a major role in the drive. Most farmer! and villagers, contributed to this
drive, because of fear of persecution.
C`IDENT"IAL
Approved For Release 2006/11/14: CIA-RDP80-0081OA003901010007-9