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Tax breaks may attract investors to develop parking lots for City buses

Update: September, 25/2014 - 09:48
The proposed measures include exemptions from land-use fees and tax incentives to encourage the private sector to invest.— Photo bizlive

HCM CITY (VNS) — A shortage of space to park buses drove HCM City People's Committee to propose tax incentives and fee exemptions for companies investing in parking lots.

The proposed measures include exemptions from land-use fees and tax incentives to encourage the private sector to invest.

Vice-chairman of the municipal People's Committee, Nguyen Huu Tin, said that while the Government expected the private sector to invest, regulations actually did not support the idea.

"Companies that build rest centres will get exemptions from the land usage fees, but it is not the same with the parking-lot businesses," he said.

He said it was also doubtful if investors would be interested in underground parking lots, as the banks did not offer preferential interest rates for these projects.

Only 20 bus parking lots are in operation in the city, but the transportation system needs another 60, according to the city's Public Transport Management and Operation Centre.

The lack of parking at the beginning and end of bus routes has left the drivers with no choice but to park on the streets, on vacant land or drive around waiting for a place to open up. Buses continually driving around with nowhere to go have been blamed for traffic jams in the city centre.

The lack of space makes frequent maintenance at bus parking lots difficult, decreasing the quality of service for customers.

HCM City plans to build more than 191 hectares of parking for public transportation by 2020. Four approved underground parking lot projects are awaiting implementation. — VNS

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