[Provided by Cheongsong-gun Council]
[Provided by Cheongsong-gun Council]

The Cheongsong-gun Council in North Gyeongsang Province passed a resolution Wednesday urging the government and the National Assembly to reconsider a proposed amendment to the Local Allocation Tax Act that would establish a new future-response fund.

In the resolution, the council said that while fiscal investment for the nation's future is necessary, creating a separate fund using local allocation tax revenue could restrict local governments' autonomy in managing their finances and undermine the stability of local fiscal operations.

The council added that counties like Cheongsong-gun, which face population decline, have a weak independent tax base and rely heavily on local allocation tax transfers, meaning any change to the system could place a significantly greater fiscal burden on such communities.

The council urged the government and the National Assembly to reconsider the Local Allocation Tax Act amendment, halt any restructuring of the system without sufficient consultation with local governments and local councils, conduct a full review of the fund's financing and operational structure, and establish institutional mechanisms to ensure that local governments' views are meaningfully reflected in the process.

"Local allocation taxes are a core source of revenue that enables local governments to provide essential administrative services to residents and support autonomous fiscal management," a Cheongsong-gun Council official said. "Even as the nation prepares for the future, the fiscal stability of local governments and the autonomy of local self-governance must be fully guaranteed."


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