Yang Bum Nam Proposes Three-Year Extension of Expiring Agricultural Tax Benefits

Representative Proposal for the Amendment to the Restriction of Special Local Taxation Act

Bum Nam Yang, Democratic Party of Korea lawmaker.

Yang Bum Nam, a lawmaker from the Democratic Party of Korea (representing Gwangju Seo-gu Eul), announced on June 26 that he has proposed a revision to the Restriction of Special Local Taxation Act. The bill aims to extend the expiration date of local tax reduction measures, which are set to end at the end of this year, by three years in order to ensure that tax benefits for the agricultural sector are not discontinued.

The main points of the amendment include: ▲ extending for three years the system that grants a 50% reduction in registration license tax when registering collateral provided for agricultural and fisheries loans; ▲ extending for three years the system that grants a 50% reduction in acquisition and property taxes when acquiring real estate for agricultural product distribution facilities; and ▲ extending for three years the application of reduced local corporate income tax rates for cooperative corporations such as agricultural and fisheries cooperatives.

The reduction in registration license tax directly affects loan interest rates for farmers, thereby reducing their financial burden. Tax support for distribution facilities is expected to help increase the prices received by farmers through streamlining and reducing distribution stages, while also enabling consumers to purchase agricultural products at more affordable prices.

In addition, the extension of reduced local corporate income tax rates for cooperative corporations can help expand practical projects that benefit farmers. This measure has been considered necessary as a form of institutional support for farmers, who are economically disadvantaged.

Yang emphasized, "If the tax benefits expire at the end of this year, the burden on farmers will increase, and the income gap between urban and rural areas may widen further. I will make every legislative effort to ensure that tax support continues for the sake of income stability for farmers, revitalization of the rural economy, and sustainable agricultural development."