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In practice, the overall cost of stock transfers in the local market is largely the brokerage cost.

"This is not high compared with other markets in the region, and our market remains competitive," said Mr Tsang.

End

Serious thought to conduct annual rates revaluations

The Financial Secretary, Mr Donald Tsang, said he would seriously consider the feasibility of conducting annual rates revaluations after the completion of the forthcoming revaluation exercise.

Mr Tsang, delivering his Budget Speech in the Legislative Council today (Wednesday), said it was far better to make regular adjustments in the rates than to introduce substantial increases at less frequent intervals.

"In the concluding speech to the 1994-95 Budget debate, my predecessor said that we would look at the option of indexing rateable values between revaluation years, so as to soften the impact of any large increase inmediately following a general revaluation.

"We have examined this issue. I have concluded that a better option might be to consider conducting a revaluation on an annual basis," he said.

Rates are significant as a relatively progressive tax and a stable source of

revenue.

It was important that the Government should go on adjusting the rates charged to reflect the changing rental values of different types of properties and in different locations, said Mr Tsang.

"We will conduct our routine three-year rates revaluation this year, with any changes coming into effect on 1 April 1997.

"I will also consider if it is necessary to introduce a suitable rates relief scheme to cushion the effect of the revaluation on those experiencing large increases in rateable values," he said.

End