Ho Chi Minh City to levy new tolls
Eager to begin reaping the rewards of autonomy, Ho
Chi Minh City will soon impose a series of new taxes
and tolls on residents and investors. The goal: pumping
up the city budget to 9 trillion dong ($600 million) in the
year 2003, up from 6 trillion this year. The
muscle-flexing follows a prime-ministerial decree in
December, which allows Vietnam's southern hub to
generate some revenue independently. Officials estimate
that, beginning in May, they will collect higher taxes on
land deals and higher tolls on roads.
They're also aiming
to impose an "environmental-protection fee" on
companies to ease the city's pollution problems. Some
extra funds will be allocated for low-income housing
and expansion of the city's water supply. While local
entrepreneurs generally support the push for
autonomy--hoping for more efficiency in local
government--some are wary of the new fees on their
way. Meanwhile, the neighbouring provinces of Dong
Nai and Binh Duong are creating new incentives to woo
investors. Says one businessman: "If you raise fees too
high, people may start looking elsewhere."
The Far Eastern Economic Review - April 11, 2002.
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