Land concession 'not linked to tax estimation'
It has been revealed that the Government do not relate land values with housing tax estimations when calculating concession premia.
The Director of Lands, Public Works and Transport Bureau (DSSOPT) Jaime Carion answered questions put by legislators at the Legislative Assembly's provisional commission on land concession meeting that was held yesterday (31 January).
Jornal Va Kio reported that DSSOPT has its own formula in estimating the value of premium for a land plot, which is based on an estimate of the final value of the developed property, including housing units and shops, minus the construction cost.
This is not related to the housing tax estimates conducted by the Financial Service Bureau (DSF).
Another system of estimates exists for calculating premia for hotels.
The newspaper pointed out that the disconnection between premium estimates and housing tax estimate may contribute to the fact that premia are being too low for recent land concessions.
Legislators demanded the Government to increase the transparency of land concessions during the meeting, and they also demanded consultation with the public and experts on any development plans.
