The Ho Chi Minh City General Department of Tax plans to provide a 20-percent tax rebate to house owners who have not raised their rents this year for students and workers.
Landlords promising not to raise rents this year for students and workers will enjoy a 20-percent tax rebate under a new program to curb inflation in HCMC.
Le Hoang Quan, Chairman of the HCM City Peoples’ Committee, estimates the total rental value in the city to be about VND500 billion (US$24 million) as there are more than 1.2 million workers and students leasing houses and rooms in the city. He said that the city wished to express and honor the good hearts of the property owners who did not hike rents for so many of the poor in need of housing.
Nguyen Dinh Tan, chief of the HCM City Tax Department, spoke of this issue with Sai Gon Giai Phong newspaper. He said that Crèches pledging not to increase their fees for workers’ children will also benefit from this rebate.
Tan added that any housing businesses and private nurseries pledging not to increase rents in 2011 would enjoy a flat-rate tax of VND800, 000 instead of VND1, 000, 000. Around 54,000 owners of lodging houses and daytime kindergartens have so far agreed not to raise rents until the end of 2011. The tax rebate is applicable from May to December.
According to an official from the Ministry of Finance, HCMC is the first city to begin this program.
