Seoul Gangseo-gu, Nationwide First to Promote Aircraft Property Tax Reduction

Temporary Provision (Draft) to Reduce Tax Base Rate from 0.3% to 2.5%... Aircraft Property Tax Expected to be Reduced by Approximately 2.47 Billion Won

[Asia Economy Reporter Jongil Park] Gangseo-gu, Seoul (Mayor Noh Hyun-song) announced that it will reduce aircraft property tax for the first time nationwide to support the air transportation industry struggling due to COVID-19.

As COVID-19 has become a global pandemic, with entry restrictions imposed by 142 countries, the air transportation industry is expected to suffer revenue losses of at least 6.3 trillion KRW by June.

Accordingly, the district revised related ordinances to lower the property tax rate to alleviate the difficulties of the air transportation industry, which is facing significant financial losses due to the sharp decline in air passenger demand caused by expanded overseas entry restrictions and flight suspensions.

Opinions will be collected through legislative notice by the end of March, and the ordinance revision is planned to be completed by the end of May at the latest.

The revision temporarily lowers the current tax rate from 0.3% to 0.25% for aircraft property tax this year.

The beneficiaries are 189 aircraft directly used for air transportation business and aircraft usage business under the Aviation Business Act.

It is estimated that if this revised ordinance passes, the air transportation industry will receive a reduction of approximately 2.47 billion KRW in aircraft property tax.

This reflects the mayor’s determination following consultations with air transportation industry stakeholders in March and is also part of follow-up measures on support plans for the aviation industry discussed at the government’s crisis management meeting.

Mayor Noh Hyun-song said, “The air transportation industry is facing difficulties due to COVID-19, so we revised the related ordinance to share the pain through aircraft property tax reduction,” and added, “We will continue to implement various policies to minimize the damage to local industries caused by COVID-19.”

This content was produced with the assistance of AI translation services.