Yeosu City Council: "Local Resource Facility Tax Should Be Imposed on Petrochemical Complex"

Urging Amendment of Local Tax Law to Include Petrochemical Facilities in Taxation Scope

Jeong Hyeon-ju, Yeosu City Council Member - Photo by Yeosu City Council

[Asia Economy Honam Reporting Headquarters Reporter Lee Hyung-kwon] Yeosu City Council (Chairman Jeon Chang-gon) urged yesterday to "amend the Local Tax Act to include petroleum refining and storage facilities within the petrochemical complex as taxable items for local resource facility tax."

The city council announced that at the 204th extraordinary session, it passed the "Resolution to Urge Amendment of the Local Tax Act for Taxation of Petrochemical Industrial Complex Local Resource Facility Tax," proposed by Councilor Jeong Hyun-joo, and sent it to the National Assembly and the Ministry of the Interior and Safety.

The local resource facility tax is a local tax levied for regional balanced development and water resource protection, imposed on power plants, specific buildings, ships, and others.

Since the petrochemical complex has been excluded from the taxable items, voices urging the amendment of the Local Tax Act have continued, especially from local governments where the complex is located.

Councilor Jeong Hyun-joo emphasized, "It is unfair that petrochemical facilities, which cause external diseconomies to local governments, are excluded from taxation. The complex causes more severe air pollution than power plants and chemical accidents occur frequently, so taxation is absolutely necessary."

She added, "Local governments hosting the complex must make significant efforts in safety management and environmental protection, which also require enormous resources. The Local Tax Act should be amended so that the relevant local governments can secure necessary funds."

Councilor Jeong also stated, "Last year, a case where a company in the Yeosu Industrial Complex illegally discharged hazardous substances was revealed, causing great shock. We strongly urge the prompt amendment of the Local Tax Act to reduce the damage suffered by residents suffering from environmental pollution as much as possible."