Economy of North Korea
Estimating gross national product in North Korea is a difficult task because of a dearth of economic data and the problem of choosing an appropriate rate of exchange for the North Korean won, the nonconvertible North Korean currency. The South Korean government's estimate placed North Korea's GNP in 1991 at US$22.9 billion, or US$1,038 per capita. In contrast, South Korea posted US$237.9 billion of GNP and a per capita income of US$5,569 in 1991. North Korea's GNP in 1991 showed a 5.2% decline from 1989, and preliminary indications were that the decline would continue. South Korea's GNP, by contrast, expanded by 9.3% and 8.4%, respectively, in 1990 and 1991.
Taxation in North Korea
Officially, there are no taxes in North Korea. The date of 1 April is the North Korean "Tax Abolition Day". North Korean propaganda claims that North Korea is the world's only tax-free country. The North Korean state, however, still collects revenue from its citizens in the form of hidden taxation through various sales taxes. In particular, the turnover tax from consumption provides for the majority of the state revenue in North Korea. The North Korean state does, therefore, collect revenues, which internationally has been compared to a taxation system, but inside North Korea the word tax is not used, and the term for state revenue has been variously translated as "Socialist Income Accounting", "Socialist Economic Management Income", and in similar fashion.