S.Korea sukuk tax bill not approved by lawmakers -official
SEOUL Dec 9 (Reuters) - South Korean lawmakers did not approve a bill providing tax breaks for sukuk, or Islamic bonds, finance ministry officials said on Thursday.
The Strategy and Finance Committee of the National Assembly did not approve the bill, which the tax subcommittee had approved, the officials said.
Committee members were not available for comment.
Last week, a source said a parliamentary panel had reached a tentative agreement to give tax breaks for sukuk. [ID:nTOE6B300L]
The finance ministry had proposed a revision to the tax code with the aim of treating sukuk as bonds so that South Korean issuers could receive the same tax advantages as those applied to conventional bond issuers.
Islamic finance does not allow lending in return for interest, so borrowing via instruments such as sukuk typically involves the sale and purchase or lease of specific assets.
Islamic banking is one of the world's fastest growing financial sectors, according to industry estimates, which put annual growth at 15-20 percent. (Reporting by Cheon Jong-woo; Editing by Chris Lewis)
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