QUOTE THE HONG KONG GOVERNMENT INVESTS PART OF ITS BUDGET SURPLUSES ABROAD IN OTHER COUNTRIES AS WELL AS THE U.K. IN ITS OWN INTEREST AS A NORMAL MEANS OF INVESTMENT. THE FUNDS SO HELD ABROAD FORM PART OF ITS EXTERNAL RESERVES IN THE SAME WAY AS THOSE OF ANY OTHER GOVERNMENT OR MONETARY AUTHORITY
UNQUOTE.
2. SUGGESTED REPLIES TO QUESTIONS (C) TO (J) ARE GIVEN BELOW IN QUOTES.
(C) QUOTE
WEEKLY WAGE IN HONG KONG WOULD BE ABNORMAL, THEREFORE THERE IS NO PUBLISHED AVERAGE WEEKLY INDUSTRIAL WAGE. HOWEVER (TABLE 5B OF THE ANNUAL REPORT OF THE LABOUR DEPARTMENT SHOWS THAT IN MARCH 1973) THE AVERAGE DAILY WAGE FOR INDUSTRIAL WORKERS WAS. HK DOLLARS 24.35) INCLUDING FRINGE BENEFITS, AND HK DOLLARS 21, EXCLUDING FRINGE BENEFITS, THERE IS NO FIGURE FOR AVERAGE HOURS WORKED BUT (TABLE 50 OF THE SAME REPORT SHOWS THAT) THE NORMAL HOURS OF WORK PER DAY FOR THE MAJORITY OF INDUSTRIAL WORKERS ARE ABOUT 8 DEPENDING ON INDUSTRY AND OCCUPATION WITH SOME CASES UP TO 10, A FEW UP TO 11 AND SOME OF LESS THAN 8 UNQUOTE THE PORTIONS IN BRACKETS COULD BE OMITTED.
100
(D) QUOTE 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 DEDUCTIONS FOR PERSONAL ALLOWANCES AND PATES UP TO 30 PER CENT ARE THEW 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 ALTERNATIVE 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 UNQUOTE.
(E) QUOTE INCOME IN 1972-73 FROM EARNINGS AND PROFITS WAS
PROPERTY TAX
DOLLARS 85 M.
SALARIES TAX
DOLLARS 183 M.
PROFITS TAX
DOLLARS 737 M.
INTEREST TAX
DOLLARS 54 M.
AND PERSONAL ASSESSMENT DOLLARS 23 M.
- 2 CONFIDENTIAL
/THE TOTAL OF