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In his Budget Speech this afternoon today (March 6), the Financial Secretary announced a further concession on rates payment as part of an overall package of special economic relief measures.

The Chief Executive announced a waiver in October last year of the rates payable in 2002 for all rateable tenements in Hong Kong, subject to a maximum concession of $2,000. To provide further relief to the community at a time of economic difficulty, it has been decided that this concession should be raised to $5,000.

"The previous concession of $2,000 reduced the load on ratepayers by $5 billion. With an increase in the concession to $5,000, their burden will be reduced by another $2.6 billion. As a result, about 85%, or more than 2.3 million ratepayers will pay no rates in 2002 while the remainder will enjoy the full concession of $5,000," a Government spokesman said.

"This additional concession will be used to set off the rates payable in the remaining three quarters of this year. Any unused balance of the concession will lapse after December 31, 2002," the spokesman added.

Separately, the Rating and Valuation Department has completed the 2002-03 General Revaluation for rates and Government rent. The new rateable values are determined by reference to rental values as at October 1, 2001. The revaluation has resulted in a reduction of six per cent in rateable value overall, which will be reflected in reduced rates payment.

The Government has decided to retain the rates percentage charge at the present level of five percent for 2002-03. Taking into account the effect of the revaluation and the concession measures, rates revenue for 2002-03 will be reduced to $9.1 billion. This is $3.4 billion lower than the 2001-02 rates revenue of $12.5 billion.

Rates and Government rent demands to be issued in late March will show the revised rateable values for 2002-03 and the net rates payable after deducting the additional concession amount. These will be accompanied by a leaflet explaining the latest General Revaluation and rates concession.

Rates and Government rent are charged at a percentage of the rateable value of the property. For the financial year 2002-03, the rates percentage charge will be retained at the present level of five per cent. If payable, Government rent is charged at three per cent of the rateable value of the property.

End/Wednesday, March 6, 2002

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