Incheon City to Reduce Water Charges for Small Business Owners by 50% for March to June

Incheon City Hall

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[Asia Economy Reporter Park Hyesook] Incheon City will reduce water charges by 50% for small business owners and self-employed individuals who are struggling due to the novel coronavirus disease (COVID-19).

The city will implement a 50% reduction in water charges (including sewage charges and water usage fees) for four months, from the March billing issued between the 14th and 19th through the June billing, for general and bathhouse use customers who use less than an average of 500 tons per month.

The water charge reduction targets 78,880 general and bathhouse water users who are small business owners and self-employed individuals, excluding residential, government offices, schools, military units, public institutions, and large-scale businesses (those using an average of 500 tons or more per month in the previous year). The estimated total reduction amount of 16 billion KRW, at 4 billion KRW per month, will be supported by the city’s disaster management fund.

The water charge reduction will be decided ex officio by the city without a separate application, and the 50% reduced amount will be billed on the statements for usage from March to June, issued from April to July. Even for large-scale businesses, if small business owners are tenants, they can apply within 90 days of receiving the bill to receive a reduction proportional to the small business owners’ usage.

The Waterworks Headquarters estimated that the average monthly water charge reduction per user will be 50,810 KRW (water 25,300 KRW + sewage 20,780 KRW + water usage fee 4,730 KRW), totaling 203,240 KRW for four months.

Separately, Incheon City plans to continue multifaceted tax support such as extensions of local tax deadlines, collection deferrals, and postponement of delinquency measures for small business owners suffering economic damage from COVID-19.

Additionally, 20,000 businesses subject to social distancing administrative orders, such as PC rooms, karaoke rooms, academies, and indoor sports facilities, will receive 300,000 KRW each in support.

Furthermore, the city and each district will reduce property taxes by up to 50% proportional to the rent reduction rate for building owners who have reduced rent by 10% or more for three months or more, or have agreed to do so before the property tax assessment date of June 1.

Even if the rent reduction period is less than three months, if the reduction rate converted to a three-month basis is 10% or more, the reduction benefit can be received. For building owners who provide long-term rent reductions, the city plans to increase the reduction rate proportionally according to the length of the rent reduction period to provide substantial tax support.

However, property taxes on buildings classified as high-end entertainment venues such as nightclubs are excluded from the reduction. This local tax reduction and cut measure will be applied starting from the property tax and local resource facility tax levied in July, following approval by the city and district councils next month.

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