47.
Government rent in lieu of premium
Following is a question by the Hon Christine Loh and a written reply by the Secretary for Planning, Environment and Lands, Mr Bowen Leung, in the Legislative Council today (Wednesday):
Question:
Under Annex III to the Sino-British Joint Declaration, all land leases not containing a right of renewal that expire before 30 June 1997 may be extended for a further period, subject to payment of an annual rent equivalent to 3% of the rateable value of the property at the date of extension. For new land leases granted in the period between the entry into force of the Joint Declaration and 30 June 1997, such leases shall be granted at a premium and nominal rental until 30 June 1997, after which date they shall not require payment of an additional premium but an annual rent equivalent to 3% of the rateable value of the property at that date shall be charged. In this connection, will the Government inform this Council of:
the reasons behind the 3% charge mentioned above; and
Reply:
(a)
(b)
the estimated annual revenue arising from the collection of the above rent?
Mr President,
(a)
the annual rent to be charged -
(1)
upon the extension of leases expiring before 30 June 1997; or
(ii)
after 30 June 1997 in respect of those leases granted from the entry into force of the Joint Declaration to 30 June 1997,