THE 2001-02 BUDGET - SUPPLEMENT

SUPPLEMENT

NOTES ON THE TEXT

Rates

Government Rent

Duty Rate of Tobacco

Vehicle and Driving Licences　

Economic Performance in 2000

Economic Prospects for 2001

EFFECT OF THE GENERAL REVALUATION ON RATES ON MAIN PROPERTY CLASSES

2001-02

Property Type

Average Reduction/Increase
in Rateable Value⁽⁶⁾

New Average Rates Payable

Savings/
Increase

$ per
month

$ per
month

Small Domestic Premises⁽¹⁾
(Private)

-5

275

-14

Medium Domestic Premises⁽¹⁾
(Private)

-3

624

-20

Large Domestic Premises⁽¹⁾
(Private)

1,538

Public Domestic Premises⁽²⁾

-7

150

-11

All Domestic Premises⁽³⁾

-4

286

-12

Shops and Commercial Premises

1,533

Offices

1,276

Industrial Premises⁽⁴⁾

-4

710

-27

All Non-domestic Premises⁽⁵⁾

1,535

All Properties

-1

467

-3

₍₁₎	_{Domestic units are classified by relation to saleable areas as below :}
	Small domestic	up to 69.9 m²	(up to 752 sq. ft.)
	Medium domestic	70 m² to 99.9 m²	(753 sq. ft. - 1,075 sq. ft.)
	Large domestic	100 m² and over	(1,076 sq. ft. and above)
₍₂₎	Including Housing Authority and Housing Society rental units
₍₃₎	Including car parking spaces
₍₄₎	Including factories and storage premises
₍₅₎	Including miscellaneous premises such as hotels, cinemas, petrol filling stations, schools, car parking spaces
₍₆₎	The rateable values for 2001-02 reflect the changes in open market rental values from 1 October 1999 to 1 October 2000

EFFECT OF THE GENERAL REVALUATION ON GOVERNMENT RENT ON MAIN PROPERTY CLASSES

2001-02

Property Type

Average Reduction/Increase
in Rateable Value⁽⁶⁾

New Average
Rent Payable

Savings/
Increase

$ per
month

$ per
month

Small Domestic Premises⁽¹⁾
(Private)

-5

154

-8

Medium Domestic Premises⁽¹⁾
(Private)

-3

322

-11

Large Domestic Premises⁽¹⁾
(Private)

-1

688

-4

Public Domestic Premises⁽²⁾

-5

All Domestic Premises⁽³⁾

-4

164

-8

Shops and Commercial Premises

861

Offices

1,291

Industrial Premises⁽⁴⁾

-4

419

-17

All Non-domestic Premises⁽⁵⁾

832

All Properties

266

-1

₍₁₎	_{Domestic units are classified by relation to saleable areas as below :}
	Small domestic	up to 69.9 m²	(up to 752 sq. ft.)
	Medium domestic	70 m² to 99.9 m²	(753 sq. ft. - 1,075 sq. ft.)
	Large domestic	100 m² and over	(1,076 sq. ft. and above)
₍₂₎	Including Housing Authority and Housing Society rental units which are subject to Government rent
₍₃₎	Including car parking spaces
₍₄₎	Including factories and storage premises
₍₅₎	Including miscellaneous premises such as hotels, cinemas, petrol filling stations, schools, car parking spaces
₍₆₎	The rateable values for 2001-02 reflect the changes in open market rental values from 1 October 1999 to 1 October 2000

DUTY RATE OF TOBACCO

Tobacco

	Present ($ per 1,000 sticks)	Proposed ($ per 1,000 sticks)
Cigarettes	766	804
	($ per Kg)	($ per Kg)
Cigars	986	1,035
Chinese prepared tobacco	188	197
All other manufactured tobacco except tobacco intended for the manufacture of cigarettes	928	974

VEHICLE AND DRIVING LICENCES

			Present ($)	Proposed ($)
Vehicle Licence
Private car of which the cylinder capacity of the engine -
	(a)	does not exceed 1,500 cubic centimetres	3,815	4,200

	(b)	exceeds 1,500 cubic centimetres but does not exceed 2,500 cubic centimetres	5,680	6,250

	(c)	exceeds 2,500 cubic centimetres but does not exceed 3,500 cubic centimetres	7,550	8,305

	(d)	exceeds 3,500 cubic centimetres but does not exceed 4,500 cubic centimetres	9,420	10,360

	(e)	exceeds 4,500 cubic centimetres	11,215	12,340

Private car the engine of which is designed to use as a fuel light diesel oil as defined in section 69 of the Dutiable Commodities Ordinance (Cap. 109) -
	(a)	does not exceed 1,500 cubic centimetres	5,275	5,805

	(b)	exceeds 1,500 cubic centimetres but does not exceed 2,500 cubic centimetres	7,140	7,855

	(c)	exceeds 2,500 cubic centimetres but does not exceed 3,500 cubic centimetres	9,010	9,910

	(d)	exceeds 3,500 cubic centimetres but does not exceed 4,500 cubic centimetres	10,880	11,965

	(e)	exceeds 4,500 cubic centimetres	12,675	13,945

Motor cycle			1,200	1,320

Motor tricycle			1,200	1,320

Driving Licence
Fees for issue or renewal of -
	(a)	full driving licence for applicants at or less than the age of 60	520	570

	(b)	full driving licence for applicants over the age of 60 (for every year (or any part thereof) of the validity period)	52	57

	(c)	Driving instructor's licence	760	835

Fees for -
	(a)	Learner's driving licence	510	560

	(b)	Temporary driving licence	250	275

	(c)	Duplicate licence	110	120

	(d)	International driving permit	80	90

	(e)	Duplicate international driving permit	80	90

ECONOMIC PERFORMANCE IN 2000

Estimated rates of change in the Gross Domestic Product and its expenditure components and in the main price indicators in 2000 :

(%)

Private consumption expenditure		5.4
Government consumption expenditure		2.1
Gross domestic fixed capital formation		8.8
of which:
building and construction	-8.5
real estate developers' margin	-11.7
machinery and equipment	24.6
Total exports of goods		17.1
domestic exports	7.5
re-exports	18.5

Imports of goods		18.1
Exports of services		14.3
Imports of services		2.6
Gross Domestic Product (GDP)		10.5
Per capita GDP		9.2
Per capita GDP at current market prices	HK$187,100
	(US$24,000)

Composite Consumer Price Index		-3.7
GDP deflator		-6.5

Performance of domestic exports and re-exports within total exports of goods :

(i) Annual growth rates in real terms of :

	*Domestic exports*	*Re-exports*
	(%)	(%)
1998	-8	-4
1999	-7	5
2000	8	18

	*Domestic exports*	*Re-exports*
	(%)	(%)
1995	17	83
1996	15	85
1997	15	85
1998	14	86
1999	13	87
2000	12	88

Annual growth rates in real terms of retained imports :

			*Retained imports*
	*Total*	*Foodstuffs and consumer goods*		*Raw materials and* *semi-manufactures*	Capital goods
	(%)	(%)		(%)	(%)
1998	-14	-21		-18	-9
1999	-12	-12		-11	-25
2000	17	12		17	38

Hong Kong's visible and invisible trade balance in 2000 :

	(HK$Billion)
Total exports of goods	1,573
Imports of goods*	1,661
Visible trade balance		-89
Invisible trade balance#		149
Combined visible and invisible trade balance#		60

* Including an estimate of imports of gold for industrial use.
# Preliminary figure.

Annual averages of the unemployment and underemployment rates :

	*Unemployment rate*	*Underemployment rate*
	(%)	(%)
1998	4.7	2.5
1999	6.1	3.0
2000	5.0	2.8

Annual rates of change in the Consumer Price Indices :

　

Composite CPI CPI(A) CPI(B) CPI(C)

(%) (%) (%) (%)

1998 2.8 2.6 2.8 3.2

1999 -4.0 -3.3 -4.7 -3.7

2000 -3.7 -2.8 -3.8 -4.5

ECONOMIC PROSPECTS FOR 2001

Forecast rates of change in the Gross Domestic Product and its expenditure components and in the main price indicators in 2001 :

		(%)
(i)	Growth rates in real terms of :
	Private consumption expenditure		2.5
	Government consumption expenditure		2.5
	Gross domestic fixed capital formation		3.6
	of which:
	building and construction	-0.8
	real estate developers' margin	-3.5
	machinery and equipment	7.0
	Total exports of goods		5.5
	domestic exports	-6
	re-exports	7
	Imports of goods		5.1
	Exports of services		6.5
	Imports of services		1.5
	Gross Domestic Product (GDP)		4
	Per capita GDP		2.8
	Per capita GDP at current market prices	HK$190,500
		(US$24,400)

(ii)	Rates of change in :
	Composite Consumer Price Index	0
	GDP deflator	-1