XN000022-1981-11-13 — Page 2

FRIDAY, NOVEMBER 13, 1981

REVIEW OF ASSESSABLE VALUES FOR PROPERTY TAX

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PROPERTY TAXPAYERS WITH PROPERTIES IN HONG KONG, KOWLOON AND NEW TERRITORIES WILL NEXT WEEK BE RECEIVING DEMAND NOTES FOR THE YEAR OF ASSESSMENT 1981/82, BASED ON UPDATED ASSESSABLE VALUES OF THE IR PROPERTIES AND TAXPAYERS WITH PROPERTIES IN NEW KOWLOON WILL RECEIVE THE IR DEMAND NOTES IN JANUARY 1982.

ANNOUNCING THIS TODAY (FRIDAY), THE COMMISSIONER OF INLAND REVENUE, MR VICTOR LADD SAID THE REVIEW OF ASSESSABLE VALUES OF PROPERTIES ANNOUNCED BY THE FINANCIAL SECRETARY IN HIS 1980 BUDGET SPEECH AND CONFIRMED IN HIS 1981 BUDGET SPEECH HAD NOW BEEN COMPLETED. THIS REVIEW WOULD COME INTO EFFECT FOR PROPERTY TAX PAYABLE FOR 1981/82 AND THE DEMAND NOTES TO BE ISSUED NEXT WEEK WOULD BE DUE FOR PAYMENT BY DECEMBER 31, 1981.

THE REVIEW, CONDUCTED BETWEEN NOVEMBER LAST YEAR AND OCTOBER THIS YEAR, WAS THE FIRST SINCE 1976 AND UPDATES ASSESSABLE VALUES IN LINE WITH ACTUAL RENTS CURRENTLY BEING CHARGED.

FOR MOST OF THE ESTIMATED 300 000 PROPERTY OWNERS CHARGEABLE WITH TAX (BECAUSE THEY DO NOT THEMSELVES RESIDE IN THEIR PROPERTY) THE UPDATED ASSESSABLE VALUES WILL RESULT IN A MATERIAL INCREASE IN THE PROPERTY TAX PAYABLE. THIS INCREASE WILL REFLECT THE SUBSTANTIAL INCREASE IN ACTUAL RENTS NOW PREVAILING COMPARED TO THE PREVIOUS VALUES ESTABLISHED IN 1976/77.

HE EMPHASISED, HOWEVER, THAT FOR THE BULK OF DOMESTIC PREMISES, ALMOST ALL OF WHICH ARE CONTROLLED UNDER THE LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE, THE UPDATED VALUES WOULD BE RESTRICTED TO THE RENT PERMITTED OR AUTHORISED BY LAW, THIS PROVISION APPLIES TO SOME 200 000 (OR NEARLY 70 PER CENT) OF ALL ASSESSABLE UNITS.

COMMENTING ON THE POSITION OF EXISTING TENANTS IN CONTROLLED PREMISES, MR LADD SAID THAT BECAUSE OF THE LIMITS IMPOSED BY THE LANDLORD AND TENANT (CONSOLIDATION) ORDINANCE, LANDLORDS WILL NOT BE ABLE TO PASS ON THE INCREASE IN PROPERTY TAX TO THE IR TENANTS.

FURTHERMORE, IT IS NOT CONSIDERED THAT INCREASES IN PROPERTY TAX FOR COMMERCIAL PREMISES IN THE HANDS OF NON-CORPORATE OWNERS WILL INFLUENCE RENTAL LEVELS, A LARGE NUMBER OF SUCH PREMISES ARE OWNED BY CORPORATIONS WHO ALREADY PAY TAX ON THEIR ACTUAL RENTS AND NORMAL MARKET CONSIDERATIONS WILL ENSURE THAT COMMERCIAL PREMISES WHETHER OWNED BY LIMITED COMPANIES OR OTHERWISE WILL COMMAND SIMILAR LEVELS OF RENT.

سامانه