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Written Answers 880
8 NOVEMBER 1974
Ko and taxes were last increased.
Mr. Ennals: Under the Inland Revenue Ordinance tax is charged on income arising in or derived from Hong Kong. Earnings and profits are classified into four categories, each of which is subject to a separate tax-property tax, salaries tax, profits tax and interest tax. The standard rate of tax is 15 per cent. on gross incomes. Tax is charged at the standard rate except for salaries tax. For this tax, income is subject to deduc- tions for personal allowances and rates up to 30 per cent. are then applied up to the point at which the tax payable equals 15 per cent. of the gross income. Thereafter the flat rate of 15 per cent. is applied to gross income. As an alter- native to the separate taxes, a resident may elect to have personal assessment. He is required then to make a return of his total Hong Kong income subject to all four taxes and is granted similar allowances and charged to tax at the same rates as applied in salaries tax. The present standard rate of 15 per cent. was introduced on 1st April 1966.
Mr. Sillars asked the Secretary of State for Foreign and Commonwealth Affairs what was the Hong Kong Government's income in 1973 from income tax and corporation tax, respectively.
Written Answers
258
tion in the areas covered by the council is about 1.7 million.
Mr. Sillars asked the Secretary of State for Foreign and Commonwealth Affairs how much of the Hong Kong budget sur- plus has been transferred to London in each of the past 10 years.
Mr. Ennals: No figures are available for the proportion of Hong Kong budget surpluses which have been invested in sterling. The latest published statement of Hong Kong Government assets and liabilities is for 31st March 1972. At that date, out of total assets of HKS 3,006 million, cash, fixed deposits and in- vestments in sterling were shown at the equivalent of HK$ 1,844 million on the liabilities side. The general revenue bal- ance, which represents accumulated bud- get surpluses, amounted to HK$ 2,916 million. Comparative figures for the whole period 1964-73, whole period 1964-73, all as at 31st March, were as follows:
Cash, fixed deposits and investments
HK $ million
General
Total
Year
assets
in sterling
revenus balance
1964
978
379
762
1965
1,047
520
823
1966
904
445
688
1967
935
436
710
1968
995
377
788
1969
1,160
397
949
1970
1,633
661
1,426
1971
2,285
1.167
Mr. Eunals: Income in 1972-73 from
2,066
1972
3,006
1,844
2,916
earnings and profits was:
1973
***
3,754
1,274
3,089
million
Property tax
HK$85
...
HK$183 HK$737 HK$54 HK$23
Salaries tax
Profits tax
Interest tax
...
Personal assessment
The total of HK$1,083 million from direct taxes was 25 per cent, of recurrent revenue.
Mr. Sillars asked the Secretary of State for Foreign and Commonwealth Affairs what are the size of the electorate for Hong Kong Urban Council and the esti- mated size of the adult population in the arcas covered by the council.
Mr. Ennals: The present number of those eligible to vote, which includes most ratepayers, all direct taxpayers, all with a secondary or higher education and many other categories of private persons, is about 250,000-300,000 adults. The estimated size of the adult popula-
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The Hong Kong Government invest part of their budget surpluses abroad, in other countries as well as the United Kingdom, in their own interest as a nor- mal means of investment. The funds so held abroad form part of their external reserves in the same way as those of any other Government or monetary authority.
Mr. Sillars asked the Secretary of State for Foreign and Commonwealth Affairs when free primary education was intro- duced in Hong Kong; and what plans the Hong Kong Government have to intro- duce compulsory secondary education for children between the age of 12 and 15
years.
Mr. Ennals: Free primary education was introduced in all Government and aided Chinese and Anglo-Chinese lan- guage primary schools in 1971.
QnA sent to bol Sec HK Ycould
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