1. The Financial Secretary proposed in the 2008-09 Budget to waive the Hotel Accommodation Tax (HAT).
2. Currently, hotel guests are levied a HAT at 3% on the hotel accommodation charges. To waive the charge of HAT, the rate will be reduced to 0%.
3. The Government will introduce legislation to give effect to the proposal into the Legislative Council as soon as possible. The proposed commencement date will be published in the Amendment Bill when gazetted.
4. Under the proposal, hotel guests will not be levied any HAT on the hotel accommodation charges from the commencement date. Similarly, hotels and guesthouses will be relieved of their quarterly obligations to pay over the HAT and file the HAT returns to the Inland Revenue Department ("IRD").
5. For the quarter within which the legislation is enacted, hotels and guesthouses will still need to pay the HAT they have collected from guests and file the HAT return to the IRD for the period where the current 3% rate is applicable, within 14 days of the commencement date.
e.g., If the commencement date is 1 July 2008 (for illustration only), hotels and guesthouses will need to pay over the HAT and file the HAT return for the period from 1 April 2008 to 30 June 2008 on or before 14 July 2008.
