Levy threshold for three construction ordinances raised to $3m
The changes will take effect on July 30.
The levy thresholds under the Construction Industry Council Ordinance (CICO), the Construction Workers Registration Ordinance (CWRO) and the Pneumoconiosis and Mesothelioma (Compensation) Ordinance (PMCO) will be raised from $1m to $3m to relieve financial burden on small and medium contractors, according to a government release.
“Under the new levy threshold, contractors are not required to pay levies for construction operations of a total value not exceeding $3m with effect from July 30, except for construction operations that have commenced or for which tenders have been submitted before the effective date,” it added.
At present, the CICO and CWRO requires contractors to pay levies at 0.5% and 0.03% of the value of the construction operations to support CICO.
Contractors were also required to pay a levy at 0.15% of the value of construction operations to finance the functions of the Pneumoconiosis Compensation Fund Board.
The move comes after the Legislative Council passed two resolutions last June to support this endeavor.