Gov’t welcomes passage of rating bill

The new rating system is expected to generate approximately $820m in additional annual revenue.

The Legislative Council has passed the Rating (Amendment) Bill 2024, which introduces a progressive rating system for domestic tenements.

This system will take effect in the fourth quarter of the financial year, from January to March 2025.

Under the new system, domestic tenements with a rateable value (RV) of $550,000 or below will continue to be charged rates at 5% of their RV. For those with an RV exceeding $550,000, the rates will be structured as follows: 5% on the first $550,000, 8% on the next $250,000, and 12% on any amount above that.

Christopher Hui, secretary for Financial Services and the Treasury, said that the progressive rating system aims to ensure that rates remain affordable whilst minimising the impact on ratepayers.

The government has also considered factors such as ratepayer affordability, market rentals, the number of affected ratepayers, and expected revenue increases in developing the system.

Additionally, it expects the new rating system to generate approximately $820m in additional annual revenue. Affected domestic tenements make up about 1.9% of all private domestic tenements in Hong Kong.

Non-domestic tenements will not be subject to this progressive rating system. The bill will be gazetted on 1 November, and the Rating and Valuation Department will inform affected ratepayers. The quarterly demands issued in the fourth quarter will reflect the new rates.