XN000022-1972-03-01 — Page 52

Wednesday, March 1, 1972

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PROPOSED REDUCTION IN RATES FOR PREMISES

From 17 per cent to 15 per Cent as From April 1, 1973

The Financial Secretary, Mr. C.P. Haddon-Cave, today proposed for

1973/74 a reduction from April 1, 1973 in the present rate charge for

premises from 17 per cent to 15 per cent.

He said that with the general increase in rentals since the last

valuation list had been prepared, most assessed values were likely to increase, some very substantially, as a result of the revaluation to be carried out this year.

Assuming average increases in rateable values of say 25 to 30 per cent

for domestic premises, he explained, the reduction in the rate would bring the increased rates that would otherwise have been payable down to around 32 per cent. When presenting his Budget in the Legislative Council, be announced his intention to put to the Council for consideration later this year a resolution

under Section 29 of the Rating Ordinance providing for a reduction in the

present rate charge.

He said that such a resolution would, on present figures, reduced

the forecast revenue from rates by $55 million to $60 million.

He said lower rate charges for tenements in the urban areas where

only an unfiltered mains water supply was available or where no mains water

supply was available would be provided for in this resolution at 14 per cent

and 13 per cent respectively.

In those parts of the New Territories, mainly Tsuen Wan and Kwai Chung,

presently assessed to rates, the standard rate was 11 per cent, he added.

He explained that this lower rate charge was determined in 1954 when

legislation had been introduced to bring those areas into rating and had been related, in a general way, to the local government type services then available,

"Having regard