TUESDAY, APRIL 21, 1992
ANOTHER DEFINITION
(INCLUDING THE BUILDINGS
WAS "ANY INCREASE IN THE VALUE OF LAND ON IT) ARISING FROM GOVERNMENT ACTION, WHETHER POSITIVE (E.G.. BY THE EXECUTION OF PUBLIC WORKS OR IMPROVEMENTS), OR NEGATIVE (E.G. BY THE IMPOSITION OF RESTRICTIONS OTHER LAND}",
ON
IN SUCH CONTEXT, THE REPORT SAID, BETTERMENT WAS CONFINED TO LAND OR PROPERTY VALUES ENHANCED BY PUBLIC SECTOR-ACTIVITIES AND EXCLUDED INCREASES IN CURRENT USE VALUE OF A SITE.
IT WOULD BE IMPRACTICABLE TO INTRODUCE A PURE LEVY BASED ON EITHER OF THESE DEFINITIONS IN HONG KONG, THE REPORT NOTED.
SOME COUNTRIES HAVE DEVISED SIMPLER PRACTICAL SYSTEMS ΤΟ RECOVER, SOME OF THE BENEFIT GIVEN TO OWNERS BY GOVERNMENT ACTIVITIES, AND SUCH SYSTEMS FALL INTO TWO CATEGORIES - PERIODIC,
PERIODIC, USUALLY ANNUAL LEVIES; AND LEVIES ON AN EVENT, USUALLY REDEVELOPMENT OR SALE.
THE REPORT SAID: "WE DO NOT CONSIDER THAT PERIODIC LEVIES ARE DESIRABLE AS THEY ARE IMPOSED ON POTENTIAL RATHER THAN ACTUAL GAINS.
"WE WOULD ALSO NOT FAVOUR LEVIES ON SALES AS THESE WOULD OFTEN FALL LARGELY ON OWNER-OCCUPIERS. IF SUCH CASES WERE EXEMPT, THE INCIDENCE OF THE TAX WOULD BE SO LESSENED AS TO REDUCE SIGNIFICANTLY THE VALUE OF THIS APPROACH AS A REVENUE SOURCE.
*
SCCB WAS SATISFIED THAT "HONG KONG COULD OPERATE A SIMPLE AND FAIR LEVY ON REDEVELOPMENT"
·
AFTER CAREFUL EXAMINATION SCCB CONCLUDED THAT INTRODUCTION OF A LEVY WOULD NOT HAVE A SIGNIFICANT EFFECT ON END-USER PRICES BUT THAT IT WOULD BE A "CLEAN TAX ON DEVELOPMENT".
LAND
"WE WOULD THEREFORE SUPPORT THE INTRODUCTION OF A DEVELOPMENT LEVY SET AT A RATE TO OFFSET AN INCREASE IN COMPENSATION PAYMENTS TO THE EXTENT THAT THIS CANNOT BE MET FROM ANTICIPATED REVENUE FROM EXISTING SOURCES, "THE REPORT SAID.
ON THE QUESTION OF COMPENSATION FOR DIMINUTION, THE REPORT SAID THE BASIC QUESTION WAS HOW FAR A GOVERNMENT SHOULD BE ALLOWED ΤΟ DEPRIVE OWNERS OF THEIR DEVELOPMENT RIGHTS WITHOUT COMPENSATION, OR EXPRESSED IN ANOTHER WAY, HOW FAR PRIVATE RIGHTS SHOULD BE FOR THE PUBLIC GOOD WITHOUT COMPENSATION BEING PAID.
GIVEN UP
IT SAID: "IT HAS LONG BEEN THE PRACTICE IN HONG KONG THAT THE DEVELOPMENT RIGHTS EXPRESSED IN THE LEASE CAN ONLY BE EXERCISED TO THE EXTENT THAT THEY ARE NOT RESTRICTED BY LEGISLATION, WHICH IN PRACTICE HAS LARGELY MEANT RESTRICTIONS IMPOSED UNDER BUILDING REGULATIONS.
SINCE 1955,
"THIS PRINCIPLE HAS BEEN LARGELY ACCEPTED. PLANNING RESTRICTIONS HAVE ALSO BEEN IMPOSED AT FIRST ONLY ON USE SINCE 1974 ALSO ON DENSITY OF DEVELOPMENT.
AND
BE
"IN OUR VIEW IT IS REASONABLE THAT SUCH RESTRICTIONS SHOULD IMPOSED IN THE PUBLIC INTEREST, PROVIDED AN OWNER WHOSE PROPERTY WILL BE AFFECTED HAS THE RIGHT TO OBJECT TO THE IMPOSITION OF THE RESTRICTIONS, AND THERE IS PROVISION FOR A FAIR HEARING OF HIS
OBJECTION.
11
/SCCB EXAMINED