XN000022-1975-12-09 — Page 2

JUESDAY, DECEMBER 9, 1970

1

NO PROPERTY TAX EXEMPTION FOR VILLAGE HOUSES IN TSUFN WAN

******

THE SECRETARY FOR THE NEW TERRITORIES, MR. DAVID AKERS-JONES, TODAY RE-AFFIRMED THE GOVERNMENT'S DECISION NOT TO GRANT EXEMPTION FROM THE PAYMENT OF PROPERTY TAX ON RENTED OUT VILLAGE PROPERTIES IN TSUEN WAN.

SPEAKING AT A PRESS CONFERENCE IN HIS OFFICE, HE SAID THAT THE REQUEST FOR EXEMPTION WAS VERY CAREFULLY CONSIDERED BY THE CRUISERNOA IN COUNCIL BEFORE THE DECISION NOT TO GRANT EXEMPTION UAS FAKEN.

HR. AKERS-JONES EXPLAINED THAT PROPERTY TAX WAS NOT A TAX ON THE OWNERSHIP OF PROPERTY AS SUCH, BUT ON INCOME FROM THE PROPERTY.

+ IT IS RELATED TO THE OTHER FORMS OF TAX ON INCOME WHICH ARE LEVIED IN HONG KONG, FOR EXAMPLE, SALARIES TAX, BUSINESS PROFITS TAX AND INTEREST TAX.

*PROPERTY TAX IS ONLY COLLECTED WIERE A PROPERTY IS LET OUT BY THE OWNER= MOREOVER, IF A PERSON LIABLE TO PAY PROPERTY TAX OPTS FOR PERSONAL ASSESSMENT, ALL HIS INCOME FROM THE FOUR TAXABLE SOURCES IS ADDED TOĜETHER, AND SUBSTANTIAL ALLOWANCES FOR THE TAX-PAYER AND HIS LIFE AND CHILDREN ARE DEDUCTED BEFORE THE TAX PAYABLE IS ASSESSED, THE SECRETARY SAID.

MR. AKERS-JONES ADDED THAT A BUDER OF PROPERTY-OWNERS IN THE RESITE VILLAGES HAD OPTED FOR PERSONAL ASSESSMENT, AND, AS A RESULT, MOST OF THEN VOULD EITHER HAVE TO PAY NO TAX AT ALL OR WOULD HAVE THEIR LIABILITY GREATLY REDUCED.

*PECAUSE PROPERTY TAX, UNLIKE RATES, IS NOT A TAX ON THE CUNERSHIP OF PROPERTY, IT ÚCULD NOT BE APPROPRIATE TO CRE EXELPTION TO QUKERS OF VILLAGE HOUSES.+

MR. AKERS-JONES POINTED GUT THAT SONE 8,000 PROPERTY OWNERS IN OTHER PARTS CF TSUEN T'AN HID PAID ALOUT 311 MILLION HU PROPERTY TAX SINCE APRIL LAST YEAR.

IT WOULD, THEREFORE, DE INFAIR TO SINGLE OUT VILLAGE PROPERTIES FOR EXELTICO,A IN AVDD),

+PROPERTY TAX AS I HAVE EXPLAINED, IS A TAX ON INCOME, WHICH IS PAYABLE BY ALL PROPERTY OURERS IN CÔNG KOM, KOUL GON ADD THE REST OF TSUEN WAN 1.10 REHT CUT THEIR PARTE .

ד !

/XP IS .......