Dozens of businesses including golf courses, hotels and shopping centres have been slapped with rental increases in Mandalay after the regional government said it should be getting a better deal on the state-owned land it leases out to companies.
The rent increases, due to come into effect at the start of the next financial year, will raise just under K1 billion, or around $760,000, for the government, officials said.
Some rents will be increased as much as five times, the Mandalay City Development Committee said earlier this month.
The committee named 26 tenants, which also include markets, swimming pools and playgrounds, and said another 40 companies or organisations could face increases too.
“The mayor decided that rentals should perform better,” said U Thet Naing Tun, joint secretary at MCDC.
“The size of the increase will depend on the kind of enterprise. We will use the extra income, more than K900 million, where it is needed. But companies that have long-term contracts with the Myanmar Investment Commission will not be included at this time,” he added.
The extra income may be used to build new infrastructure such as roads and bridges.
The rent increases follow criticism from MPs who said rates were no longer fair on the government because market rates for real estate had increased since they were set.
Source: Myanmar Business Today
