When the Financial Secretary, Paul Chan Mo-po, announced his request for the Financial Services and the Treasury Bureau and the Rating and Valuation Department to review the rates system when he delivered the last "Budget" last year, in his latest "Budget" speech this year Here, he explained the results of the relevant inspections by the authorities, and finalized the proposed two major revisions to residential property rates in the future: including the rate concession to limit the benefits of a single residential property under the name of a natural person owner, and the rate collection rate for the overall residential property. Three-level progressive calculation is introduced.
The public opinion in the press has generally responded positively to the review of the rates system. Some people think that these changes show that the government's fiscal and tax policy has finally changed. Some people point out that it can serve as the basis for further tax reform in the future, such as the introduction of a progressive system in other taxes such as profits tax.
From the 2007/08 financial year to the present, the Government has basically continued to provide different levels of rate concessions to ratepayers every year, and there have been cases where the amount of concessions varies greatly in different quarters or property types.
In the 2020/21 financial year, the actual general rates revenue was about $19.044 billion, accounting for about 4.1% of the Government Headquarters revenue excluding the amount of the transfer fund for the same period.
Financial Secretary Paul Chan summed up the results of the review of the rates system in the latest Budget.
(Associated Press)
According to the recommendations of the authorities, the rates system will continue to decide whether to provide concessions on an annual basis according to the situation in the future. However, after the third quarter of 2023/24, the objects of rate concessions for residential properties will be limited to those registered as owners in their individual capacity. Hong Kong resident.
In addition, a progressive rate system will be introduced for residential properties after 2024/25.
Chen Maobo believes that the above-mentioned changes to the rates system can reflect the principle of "pay more for those who can". However, if this goal is envisaged, there seems to be some room for improvement in the current government plan.
For details, please read Issue 307 of "Hong Kong 01" Electronic Weekly (March 7, 2022) "
Review of the Rating System Can Be More Comprehensive
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