The Financial Secretary announced in the 2020-21 Budget Speech, a package of helping measures for the commercial and industrial sector. On 8 April 2020, the Chief Executive announced another round of relief measures to support the businesses. The measures aim to assist enterprises to cope with current economic challenges. About 250,000 non-domestic accounts are expected to benefit from these initiatives. The measures include, waiving 75 % of water and sewage charges for water consumption for non-domestic purposes. It includes trade purposes, construction purposes and shipping purposes
What is the concession period and amount?
The concession period from 1 December 2019 to 30 November 2020. Concession subject to a respective monthly cap of $20,000 (water charges) and $12,500 (sewage charges) for each water bill. A month is interpreted as 30.41 days, the respective daily cap is $657.68 (water charges) and $411.05 (sewage charges).
How do consumers get the concession?
The Water Supplies Department (WSD) will make a corresponding waiver adjustment on water bills. So, consumers no need to apply.
How to calculate the waiver?
Example: Company A holds a water account for Trade Purpose
| Consumption period | Consumption (m3) |
| 15 Nov 2019 – 14 Jul 2020 (242 days) | 3,000 |
Charges before waiver
| Water Charge | Sewage Charge |
| 3,000 x $4.58 = $13,740
|
3,000 x $2.92 = $8,760 |
| Consumption period within concession period | 75% Waiver |
| 1 Dec 2019 – 14 Jul 2020
Concession is only applicable to consumption period falling within the concession period |
Water Charge
3000 x 227/242 x $4.58 x 75% = $9,666.26 Sewage Charge 3000 x 227/242 x $2.92 x 75% = $6,162.77 |
Concession ceiling: Concession ceiling is calculated by multiplying the daily ceiling with the no. of days in concession period
| No. of days in concession period | 227 Days |
| Water Charge | Sewage Charge |
| $657.68 x 227 = $149,293.36 | $411.04 x 227 = $93,308.35 |
Amounts of waiver
| Water Charge | Sewage Charge |
| $9,666.26 | $6,162.77 |
By calculation, 75% of the charges are below the concession ceiling. Hence, Company A can have full 75% waiver.
Charges after waiver
| Water Charge | Sewage Charge |
| $13,740 – $9,666.26
= $4.073.74 |
$8,760 – $6,162.77
=$2,597.23 |
For further information, please contact us.
You may want to read: HK$137.5 BILLION FINANCIAL RELIEF PACKAGE OVERVIEW FOR BUSINESSES