Representative Yang Hyang-ja Proposes Three Bills to Amend the Restriction of Special Taxation Act

[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] A bill to maintain the tax special case system supporting fishermen and the fisheries industry, which is scheduled to end at the end of this year, has been proposed.

Yang Hyang-ja, a member of the National Assembly (Democratic Party of Korea·Gwangju Seo-gu Eul), announced on the 17th that she has jointly proposed three “Amendments to the Restriction of Special Taxation Act” to extend tax support for the fisheries sector and fishermen for three years to revitalize fisheries and enhance competitiveness.

The current law provides tax support such as exemption from value-added tax on name usage services and computer services supplied by the Fisheries Cooperative and corporate tax exemption for English fishery cooperatives, but these systems are scheduled to end at the end of this year.

Rep. Yang said, “The fisheries industry is a primary basic industry directly related to the national diet, and it is a field where productivity alone cannot be measured,” adding, “Judging that continuous tax support is urgently needed, I have proposed a bill to extend the tax support benefits, which are set to expire at the end of this year, for three years each until 2024.”

The first amendment is a bill to extend the value-added tax exemption on name usage fees collected by the National Federation of Fisheries Cooperatives.

Currently, the name usage fees, which are the fees for name usage services supplied by the National Federation of Fisheries Cooperatives, are used as resources to support fishermen.

However, if value-added tax is imposed, there is a concern that the fishermen support projects, which are one of the core purposes of the National Federation of Fisheries Cooperatives, may be reduced.

Rep. Yang emphasized, “This amendment is essential to prevent the reduction of support projects due to the burden of value-added tax and to secure funds for economic and guidance projects for fishermen.”

The second amendment is a bill to extend the value-added tax exemption on computer services supplied by the Fisheries Cooperative Bank to member cooperatives.

If the bill expires and value-added tax is imposed on computer services, the amount of value-added tax could significantly reduce the funds for fishermen support, such as core purpose project expenses.

Therefore, this bill aims to continuously exempt value-added tax on computer services supplied by the National Federation of Fisheries Cooperatives to the Fisheries Cooperative Bank and by the Fisheries Cooperative Bank to cooperatives and the federation.

Rep. Yang stressed the necessity of extension, saying, “The value-added tax burden on frontline cooperatives leads to a reduction in funds for fishermen support, which can weaken the competitiveness of the fisheries industry.”

The third amendment is a bill to extend the exemption of corporate tax for English fishery cooperatives and the reduction of capital gains tax on land for fishing purposes.

English fishery cooperatives have contributed to improving competitiveness through organization and specialization of fisheries under this system. However, if the tax benefits end, there is concern that the net profit margin relative to sales of English fishery cooperatives will decrease, weakening the competitiveness of the fisheries industry.

In terms of responding to the expansion of the fishery product market opening such as FTA agreements, Rep. Yang explained that it will greatly help strengthen the competitiveness of English fishery cooperatives and promote return-to-fishing and rural migration in preparation for aging fishing villages.

Rep. Yang said, “Tax support for fishermen who are facing difficulties due to the reduction of school meals caused by COVID-19 and the contraction of domestic fishery product consumption must continue,” adding, “Since the sunset deadline is approaching, I will do my best to ensure that the amendments are passed within this year.”

Meanwhile, the amendments were jointly proposed by Representatives Min Hyung-bae, Seo Sam-seok, Wi Seong-gon, Yoon Young-duk, Yoon Jae-gap, Lee Hae-sik, Lim Oh-kyung, Lim Ho-seon, Jeon Yong-gi, and Jo Oh-seop.

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