T'way Air 5 planes (Yangyang) · Jin Air 5 planes (Wonju)
[Asia Economy Reporter La Young-cheol] Gangwon Province is expected to see an increase in local taxes as it attracts the parking registration of five aircraft each at Yangyang Airport and Wonju Airport.
On the 2nd, Gangwon Province announced, "We have attracted parking registration for five T'way Air passenger aircraft at Yangyang Airport and five Jin Air passenger aircraft at Wonju Airport (Hoengseong)."
Parking refers to the location where aircraft are parked according to the 'Aircraft Safety Act' (registered with the local government of the airport address). Parking registration is similar to a garage concept, and local taxes on aircraft are imposed by the local government where the registered airport is located.
Accordingly, property tax on parking registration is levied differentially based on aircraft purchase cost, flight hours (aircraft age), and aircraft size. Property tax per airport is about 300 to 500 million KRW annually (based on five aircraft), resulting in an increase of 3 to 5 billion KRW in local taxes over 10 years if maintained.
The province plans to discuss with cities and counties the possibility of providing some of the local tax payments as incentives to revitalize airports and support the early stabilization of the aviation industry, which has faced difficulties due to COVID-19.
A provincial official said, "As the number of aircraft registered for parking at airports within the province increases, it will lead to airport revitalization and increased tax revenue. We will continue to visit and attract airlines."
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