THE proposal to conduct rates revaluation more frequently is not intended to help cover revenue losses from newly introduced tax concessions, says the Deputy Secretary for the Treasury, Alan Lai Nin. Mr Lai's comments yesterday follow Financial Secretary Donald Tsang Yam-kuen's Budget announcement last Wednesday that he would seriously consider the feasibility of annual rates revaluations. Revaluations of rental properties are conducted every three years. At yesterday's City Forum, the proposal was criticised for helping the Government make up the revenue loss because of new tax concessions. Liberal Party legislator Henry Tang Ying-yen said: 'The Government uses its left hand to give the tax concessions, and then uses its right hand to get the money back by increasing the rates more frequently.' Associate head of the Polytechnic University's Department of Business Studies Priscilla Lau Pui-king said it would be unfair to ratepayers if revaluations were carried out annually as rental values fluctuated. 'Unlike the rental values in other countries which grow steadily, the values in Hong Kong are fluctuating,' she said. 'I think it's fairer if the revaluation is done based on average figures over a period of a few years.' However, the vice-president of the Institute of Taxation, Marcellus Wong Yui-keung, said it would be fair to have annual revaluations if there was a ceiling on the increase in rates. Mr Lai said the public would find it more acceptable to have the rates adjusted gradually every year instead of having big adjustments every three years. The Government will conduct a three-year rates revaluation this year with changes coming into effect on April 1 next year.
