Unified Party's Lee Dal-gon Proposes 'Tax Special Cases Restriction Act' to Enhance Agricultural and Fishery Competitiveness

[Asia Economy Yeongnam Reporting Headquarters Reporter Hwang Choi Hyun-joo] On the 5th, Lee Dal-gon, a member of the Future United Party in the National Assembly (Changwon Jinhae), took the lead in proposing partial amendments to the 'Restriction of Special Taxation Act' and the 'Restriction of Local Tax Special Act' to strengthen the competitiveness of agriculture and fisheries.

According to Representative Lee, due to the recent novel coronavirus infection (COVID-19), the economic growth rate for the second quarter of this year declined by -3.3% compared to the previous quarter, and the economic recession has prolonged, causing most farms and fisheries to struggle with labor shortages.

In particular, based on 2018 data, farm household income decreased from 42.07 million won to 41.18 million won, and fishing household income dropped from 51.84 million won to 48.42 million won last year.

This year, a sharper decline is expected due to COVID-19.

The main contents of the tax special extension include ▲exemption from capital gains tax on land for livestock and fisheries use ▲special provisions on the calculation of corporate tax base and tax rate application for cooperative corporations such as agricultural cooperatives ▲acquisition tax reduction on fishery rights, aquaculture rights, fishing vessels, and land for fisheries use ▲acquisition tax reduction on farmland and forest land acquired by self-cultivating farmers for cultivation purposes and agricultural facilities, etc. Most of the tax and local tax special cases scheduled to end this year are proposed to be extended for the next 10 years.

Representative Lee Dal-gon stated, “Tax special provisions for agriculture and fisheries urgently need to be revised considering the domestic and international economic situations such as population decline and aging in rural areas, and the prolonged economic recession caused by COVID-19.”

He added, “Above all, a long-term extension of tax special provisions is necessary to ensure stable income for farmers and fishermen and to sustain agricultural and fishery livelihoods.”