2020-21 Budget: Waiver of Water and Sewage Charges for Commercial Units under

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2020-07-20

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

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