1-
MONDAY, NOVEMBER 29, 1976
POSSIBLE INCREASE OF RATEABLE VALUES EXPLAINED
******
THE GOVERNMENT IS TO REVISE RATEABLE VALUES FOR 1977-78, THE FIRST REVISION IN FOUR YEARS, THE COMMISSIONER OF RATING AND VALUATION, MR. RAYMOND FRY, SAID TODAY.
HE WAS CLARIFYING A FEW POINTS HE MADE LAST WEEK IN HIS SPEECH TO THE HONG KONG MANAGEMENT ASSOCIATION IN WHICH HE MENTIONED THE POSSIBLE INCREASE OF RATEABLE VALUES,
MR. FRY POINTED OUT THAT THE GOVERNMENT HAD NOT DECIDED TO INCREASE RATES BY 80 PER CENT NEITHER, INDEED HAD THE GOVERNMENT DECIDED TO INCREASE RATEABLE VALUES BY 80 PER CENT.
ALL THE GOVERNMENT HAD DONE SO FAR, HE ADDED, WAS TO INSTRUCT HIM TO REVISE RATEABLE VALUES FOR 1977-78.
HE EXPLAINED THAT THESE RATEABLE VALUES HAD NOT BEEN REVISED FOR FOUR YEARS.
AS A RESULT, HE ADDED, THEY LAGGED BEHIND CURRENT RENTAL VALUES.
MR. FRY FURTHER EXPLAINED THAT THE WHOLE PURPOSE OF THE RATING SYSTEM WAS TO APPORTION THE RATES BURDEN BY REFERENCE TO THE RENTAL VALUE OF PREMISES.
+ IF, THEREFORE, WE DO NOT REVISE THESE VALUES FAIRLY FREQUENTLY WE GET AN UNREAL SITUATION, IN THAT WE HAVE TO TRY TO ASSESS PREMISES ON THE BASIS OF RENTAL VALUES WHICH NO LONGER OBTAIN, HE SAID. IF I MAY TAKE A SIMPLE ANALOGY FROM OUR DIRECT TAX SYSTEM: IT IS LIKE CHARGING SALARIES TAX ON THE BASIS OF SALARIES BEING PAID FOUR YEARS AGO.+
THE COMMISSIONER ADDED THAT WHAT HE HAD SAID IN HIS SPEECH WAS THAT FOLLOWING ANALYSIS OF CURRENT MARKET RENTALS AND THE UPDATING OF VALUATION METHODS EMPLOYED, THE RESULT OF THE REVIEW WAS LIKELY TO BE AN INCREASE OF AROUND 80 PER CENT.
THIS, HE SAID, WAS MERELY THE RESULT OF THE REVIEWING BY PROFESSIONAL VALUERS OF RATEABLE VALUES IN THE VALUATION LISTS AND WAS NOT A DECISION TAKEN BY GOVERNMENT OR, FOR THAT MATTER, HIM PERSONALLY.
MR. FRY SAID THAT SINCE THE INCREASE ON THIS OCCASION WERE RATHER LARGER THAN ON PREVIOUS OCCASSION MAINLY DUE TO THE TIME IT HAD TAKEN TO CARRY OUT THE REVIEW HE EXPECTED WIDE INTEREST FROM RATEPAYERS.
/HE ADDED