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[New Crown Pneumonia] There should be a very tax policy in extraordinary times

2020-04-01T02:12:32.385Z


The global economy is being dragged down by new crown pneumonia, and the depth and breadth of the economic downturn is still unknown. At a time when government assistance programs are being introduced, Legislative Councillor Xie Weixuan


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Written by: Comment Editor

2020-04-01 10:00

Last updated: 2020-04-01 10:00

The global economy is being dragged down by new crown pneumonia, and the depth and breadth of the economic downturn is still unknown. At the time when government assistance programs were being introduced, it was not unreasonable that the Legislative Councillor, Mr. Xie Weizheng of the Building, Surveying, Urban Planning and Gardening circles suggested that the Government should take the initiative to re-evaluate rates. In addition, with salaries tax bills commonly known as "green bombs" being sent out in the second quarter, the Hong Kong government should take the initiative to lend a helping hand in times of crisis to allow the people to postpone taxes.

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The current calculation of the rateable value of a property is an estimate of the market value rent that can be obtained assuming that the property is used for lease on the specified valuation basis date. In assessing the taxable amount, the authorities will take into consideration factors such as open market rents, building age, area size, location, and even transportation and recreational facilities in the vicinity of similar types of real estate to ensure that the tax amount is reasonable. In the fiscal year 2020/21, rates will remain at 5% of the market rent.

Rental value should be more "discounted"

The problem is that since the assessment of the rateable value is based on October 1st, the taxable amount may not reflect the sudden changes in the current economic environment. Although Hong Kong's economy has shown signs of fatigue at the end of last year, the onset of new coronary pneumonia not only made the recovery distant, but also dragged Hong Kong into the edge of the depression. Its depth and breadth are still unpredictable. Judging from the Federal Reserve's consecutive interest rate cuts within two weeks, and the central banks' desire to imitate "infinite amount" to rescue the economy, most of the power of the new crown pneumonia is more than that of the 2008 financial tsunami. At a time when people's livelihood is dying, Mr Tse Wai-kwong suggested that the government could take the initiative to re-evaluate the value of government rents in advance, so that the citizens could make the tax-paid rents more “market-friendly”.

Under the persistently distorted and accumulated strong rigid demand of the property market in Hong Kong, property prices and rents remain high. If the current mechanism is continued in extraordinary times, it may not reflect the economic capacity of the people. According to the figures just released by the Rating and Valuation Department, even though Hong Kong was affected by anti-revision campaigns and new crown pneumonia before and after, the price index of private homes last month was still 370.7, a "only drop" of 2.1% on a monthly basis, and the rent index ended The five-month losing streak, not falling but rising, failed to reflect the current situation of the industry depression, let alone the ripple effect of the unemployment wave has not yet fully surfaced.

Even under the current mechanism, if the public is dissatisfied with the rateable value of the property, they can raise an objection within a specified date and let the Rating and Valuation Department reassess the value of the rent. However, only half a year from October last year to the present, the economic downturn has been shocking. Therefore, when the authorities issue rates and government rent notices next month, there will be a large number of owners who refuse to appeal due to the changing economic environment. Therefore, instead of consuming a lot of manpower and resources to reassess the rental value, the authorities might as well cut the revaluation of last October ’s valuation and use it as a measure to benefit the people, which can not only play a role in public relations, but also relieve it. People's difficulties.

Promote rent reduction and tax deferral

Some commentators may have questioned that the latest Budget has announced the reduction of four season rates for all residential property owners in Hong Kong, with a quarterly ceiling of $ 1,500 per household, that is, about 61% of residential properties will not be subject to rates for the next year. It is virtually unaffected by the revaluation. However, if the government wants to stabilize employment, it can only depend on the good will of the owner, but the owner's will depend on operating costs such as rent. Therefore, the revaluation of the rental value can not only be regarded as an incentive for the government to induce the owners of industrial and commercial shops to reduce rents. Far-spaced calls for space came practically.

In addition, as workers have received "green bombs" one after another, the Hong Kong Government may also consider suspending tax payment arrangements to allow the public to have more "emergency money" beside them. Although the Inland Revenue Department announced on March 22 that, as civil servants return to special work arrangements, applications for opposition and tax deferral will be postponed, but the starting point is based on administrative arrangements and inadequate manpower, rather than standing on bailout From the perspective of measures. However, when the whole people were sent 10,000 yuan far away, Yuanshui could not save the near fire. Therefore, the tax deferral arrangement not only involved a small number of administrative procedures, but also the people could enjoy immediate results. s arrangement.

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New Crown Pneumonia

Source: hk1

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