“ The deficit, of course, indicates that revenue will not be able to finance all the capital expenditure arising from government's heavy programme of non-recurrent public works, mainly for more schools, medical facilities, housing, water supplies, roads and land development schemes. ”

“ Internal Revenue Income was first subjected to direct taxation in Hong Kong in 1940 as a temporary war-time measure and no attempt was made to collect tax after the liberation of the Colony, although the ordinance was not repealed until 1947. ”

“ The privilege of election is not available to non-residents.
The standard rate of tax was raised to 15 per cent from April 1, 1966, having stood at 121⁄2 per cent for the previous 15 years. Business profits, interest received from loans and the interest element of purchased annuities are charged to tax at the full standard rate. However, where the profits of a non-corporate business are below $7,000 for any year, no tax is charged and tax chargeable on such a business is restricted to one-half of the amount by which the profits exceed $7,000. ”

“ Stocks are sufficient to replace all notes issued but, although banks have been asked to withdraw all notes received in the course of business, many still remain unredeemed although few appear to be in active circulation. The dollar notes and coins are backed by security funds which maintain their assets partly in sterling and partly in Hong Kong dollar bank accounts. The government also issues subsidiary coins of the value of 5 cents, 10 cents and 50 cents, and notes of the value of 1 cent. ”

“ It is estimated that the revenue from Earnings and Profits Tax during the financial year 1967–8 will be $502 million.
Estate Duty generally follows the lines of the British tax of the same name. Duty is assessed only on that part of an estate which is in Hong Kong. The rates of duty range from three per cent on estates valued between $100,000 and $200,000 to 25 per cent on estates over $4 million. Yield for the year ending March 31, 1968 is estimated at $15 million. ”

“ The scale of duties on imported tobacco ranges from $2.50 a pound for Chinese prepared tobacco to $11.25 a pound on non-Commonwealth cigars. Preferential rates are granted for unmanufactured tobacco of Commonwealth origin and to cigars, cigarettes and pipe tobacco of Commonwealth origin or manufacture.
The duties on motor spirits and other light or heavy oils now stand at $1.80 and 10 cents a gallon respectively. The general rate of duty on diesel oils for road vehicles is $1.30 per gallon, although public omnibus operators and marine and industrial users pay reduced rates. ”

“ In addition to the Assets and Liabilities referred to, there exists the Development Loan Fund and a Lotteries Fund for special purposes (see Appendix XIII) . The Development Loan Fund, of $579 million, is used to finance social and economic development projects of a self-liquidating nature. ”

“ This resulted in an increase in the note issue at the time; the note issue at December 31, 1967, was $2,176,270,000, representing 26.7 per cent of total deposits.
Banking business in the Colony is licensed by the government and carried on subject to the provisions of the Banking Ordinance, which deals with the supervision of banks and requirements of minimum capital and reserves, liquidity ratios, and limitations on the holding of certain classes of assets. Monthly returns are made by all banks to the Commissioner of Banking, who makes regular inspections. ”

“ Entertainment Tax is charged on the price of admission to places of entertainment, the rate varies with the amount charged, but averages about 22 per cent. Certain types of entertainment given for charitable or educational purposes are taxed at a lower rate or may be exempt. Public Dance Halls Tax exacts a levy of 10 per cent on all dance hall charges. Bets and Sweeps Tax imposes 71⁄2 per cent on totalizator receipts and 25 per cent on cash sweepstake receipts. ”