Hong Kong Budget: Progressive property rates could see owners of pricier flats paying more

Hong Kong aims to introduce a progressive rating system for residential properties that would see owners of pricier flats paying more in property rates, the city’s financial chief announced on Wednesday as the latest budget was revealed.

Rates are a form of tax paid by property owners in Hong Kong, charged at a percentage of the rateable value of the property, which is its estimated annual rental value. Financial Secretary Paul Chan said the implementation of a progressive rating system could earn the government HK$7.6 billion annually.

Finance chief Paul Chan delivers the 2022 budget. Photo: GovHK.

For properties with a rateable value of HK$550,000 or below, it was suggested the rates will be charged at the current level of 5 per cent. For units with a higher rateable value, the first HK$550,000 would be charged at five per cent and the subsequent HK$250,000 will be charged at 8 per cent. Units with a rateable value exceeding HK$800,000 will be charged at 12 per cent.

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