Journal of the Society of Naval Architects of Korea (대한조선학회논문집)

The Society of Naval Architects of Korea (대한조선학회)
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Renewing Tonnage Taxation of Shipping in Linkage to Greenship Certification Scheme

친환경선박 인증과 연계한 톤세제도 합리화 방안

  • Junkeon Ahn (Marine Environmental Department, Korea Maritime Transportation Safety Authority) ;
  • Jieun Lee (Marine Environmental Department, Korea Maritime Transportation Safety Authority)
  • 안준건 (한국해양교통안전공단 교통연구본부 해양환경실) ;
  • 이지은 (한국해양교통안전공단 교통연구본부 해양환경실)
  • Received : 2023.01.28
  • Accepted : 2023.03.01
  • Published : 2023.04.20
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Abstract

Tonnage taxation has contributed to developing the Korean maritime industry through tax relief for shipping companies. The current tonnage taxation relies on the net tonnage as an earning-capacity indicator in a merchant ship. Although the tonnage tax accords with horizontal equity, it does not match vertical equity because of the different taxable capacities of an individual company. Nowadays, maritime transport uses a dedicated vessel, and each shipping freight embeds a different value of time. It means the tonnage taxation regime should consider the added value of each shipping freight. Meanwhile, as the environmental regulations led by the International Maritime Organization are being strengthened, the Korean merchant fleet must be eco-friendly soon after. This study explores the alternative to renewing tonnage taxation by utilizing the Greenship certification and considering the ability-to-pay principle. Because the Greenship certification scheme encourages shipping decarbonization, maritime transport by a certified ocean-going vessel comes to be treated as an activity for the green economy. Special taxation for the green economy may contribute to shipping sustainability and market competitiveness.

Keywords

References

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