Land tax suddenly increased 75%, drawing residents’ ire

Since the end of last year, the North Korean regime has raised the land tax rate that it imposes on residents by 75 percent and angered residents, many of whom regard these plots as a valued part of their livelihood system.
North Korea does not officially have a system of taxation, after it was abolished with much fanfare in the 1970s; however, North Korea began to collect land taxes in the early 2000s. Since then, the regime has raised the rate slightly, but it remained around 40 KPW (approximately 0.005 USD) per pyeong (1 pyeong = approximately 1.8 square meters). Last year, however, the price rose considerably to 70 KPW/pyeong.    
“The land tax rate suddenly rose by 30 KPW at the end of last year,” said an inside source from North Hamgyong Province during a telephone call with Daily NK on May 19. “The authorities have initiated an additional collection this spring targeted at residents who were unable to pay last year’s land usage fee.” 
“The price difference might not seem very significant at first glance, but for residents who have a lot of land, this is a significant amount,” he added. “Let’s say I own 1,000 pyeong of land. That means that I’ve suddenly found out that I have to pay 30,000 KPW (~3.75 USD).” 
At today’s rates, 30,000 KPW is enough to purchase about 6 kg of rice in the marketplace. For most residents, this is a significant sum. 
According to the source, for the residents who are struggling, the development has come as particularly bad news, eliciting harsh complaints along the lines of: “I don’t have any seeds, and I haven’t been able to farm, so why am I being charged for my land?” Some have reportedly refused to pay the tax. 
When it comes to understanding why the authorities have suddenly increased the land tax, observers believe the regime is turning to its own population as a source of revenue as international sanctions have made it more difficult for Pyongyang to earn foreign currency abroad. This measure has made life even more difficult for ordinary people in North Korea.  
“Some residents who have been burdened by the land tax increase have criticized the regime, asking, ‘How is this different from tenant farming? They [the authorities] should be ashamed. They broadcast propaganda boasting that North Korea is a tax-free state,’” said a source in Ryanggang Province.
“Residents who have regular access to outside information feel that the regime is compensating for the damage being done by international sanctions by exploiting us as the solution.”