Fishing vessel reduction compensation is not subject to taxation.

The issue of taxing fishing vessel reduction subsidies has become a point of contention in the National Assembly. Fishermen find it inconvenient that the fishing vessel reduction subsidies, which have been legally and customarily tax-exempt for decades, have become a subject of controversy. The very notion that taxation and non-taxation are decided based on the government's convenience is abnormal. The National Tax Service announced the taxation of fishing vessel reduction subsidies starting from 2024 ahead of the comprehensive income tax filing in May of last year. Fishermen who had been complying with the government's policy to promote fishing vessel reduction for resource conservation and maintenance as well as for a sustainable industry found themselves caught off guard. They expressed their frustration over the unilateral announcement without prior notice, system adjustments, or a grace period. From 1994 to 2024, the government spent approximately 2.38 trillion won to reduce ...