Construction Industry Council - Annual Report 2024

CONSTRUCTION INDUSTRY COUNCIL 214 For the year ended 31 December 2024 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 4. LEVY INCOME 2024 2023 HK$ HK$ Private sector 940,897,819 639,126,247 Public sector 887,171,192 618,206,829 Others (Note) 240,727,465 153,854,897 Penalty on overdue levy 8,813,262 3,172,185 Surcharge 20,394,990 17,056,421 2,098,004,728 1,431,416,579 Note: Others include levy income on construction operations relating to the port and airport development, Mass Transit Railway, etc. In accordance with the provisions of section 32 of the Construction Industry Council Ordinance, a levy is imposed at the rate of 0.5% on the value of all construction operations undertaken or carried out in Hong Kong, for which the tender has been submitted on or after 30 July 2018, and with a total value exceeding HK$3,000,000* (see below). In addition, in accordance with the provisions of section 23 of the Construction Workers Registration Ordinance, a levy is imposed at the rate of 0.03% on the value of all construction operations undertaken or carried out in Hong Kong, for which the tender has been submitted or a construction contract has been entered or the construction operations have begun on or after 30 July 2018 and with a total value exceeding HK$3,000,000 # (see below). * Any construction operations which have commenced or been tendered before 30 July 2018, the levy threshold is HK$1,000,000. The levy rate for these operations was 0.5%, effective on 20 August 2012 while it was 0.4% before 20 August 2012 and 0.25% before 10 January 2000. # Any construction operations which have commenced or been tendered between 24 February 2005 and 29 July 2018, the levy threshold is HK$1,000,000. 5. WORKERS REGISTRATION FEE INCOME Workers registration fees are collected from construction workers who are applying for registration which normally has a validity period of 60 months in accordance with the Construction Workers Registration (Fees) Regulation (Cap 583 (B)). Workers registration fee income is recognised over time and the advances received relating to future periods are treated as contract liabilities (Note 22). Revenue is recognised on a time proportion basis based on the output method.