revised
Shortfall Estimate
%
5.06
0.61 12.33
108.14
32.49
fall in prime interest rates in August 1976 and again in January 1977. Of the remaining major subheads, 'Bets and sweeps tax' had an excess of $84,878,326 or 47.2% due mainly to the further extension of authorised off-course betting facilities and the increasing popularity of the newer forms of multiple betting and the lotteries conducted by the Hong Kong Lotteries Board; while the yield from 'Estate duty' which is extremely difficult to estimate, was $23,237,303 or 37.5% more than anticipated partly because a number of deaths involving extremely large estates occurred during the year and partly because substantial amounts were recovered in respect of cases where the deaths occurred in previous years but the complexity of the deceaseds' affairs led to unavoidable delays in asset realisation and settlement.
Head 4- Motor Vehicle Taxes
The single subhead 'First registration' tax produced $52,988,761 or 108.1% more revenue than anticipated as the result of a substantial increase in the number of vehicles registered during the year.
3.90
Head 5- Fines, Forfeitures and Penalties
10.72
3.75 14.55
31.69
6.96 34.05
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—
There were significant variations from the estimates on all four subheads; Revenue from 'Penalties Fixed penalty scheme' was $10,562,320 (38.5%) less than anticipated due to delay in the implementation of the fixed penalty scheme for moving offences and the same factor was largely responsible for a corresponding excess of $22,601,960 (119%) over the original estimate in the case of 'Fines'. The two smaller subheads also produced excesses; these were $1,454,964 (38.6%) under 'Forfeitures' because more cases came before the courts than had been anticipated at the time when the estimate was prepared and $3,789,082 (126.3%) under 'Penalties - other' because penalty charges for late lodgement of trade declarations were doubled with effect from January 1976 and because, despite publicity given to the need to lodge these declarations within the prescribed period, there was no decline in the numbers of late lodgements.
Head 6 - Licences other than Appropriations-in-Aid
There were five subheads under this Head for which estimates were provided and of these two produced less revenue than expected and three more. The main variations, both shortfalls, were $664,965 (26.6%) under 'Deposit-taking companies' because fewer companies applied for registration than were originally anticipated at the time when the estimate was being prepared and $1,166,400 (77.8%) under 'Ferries' due to the waiver of the monthly fees and rents payable by the Hong Kong & Yaumati Ferry Company Limited for the year.
Head 7 - Franchises
Out of seven subheads under this Head for which estimates were provided four produced more and three produced less than anticipated and there were comparatively minor collections under two further subheads for which no estimates were provided. Only three of the variations were substantial; these were a shortfall of $9,970,350 (26.2%) under ‘Royalty Cable and Wireless Ltd.' because the growth rate was lower than anticipated, an excess of $601,693 (54.7%) under 'Royalty - Petrol filling stations' due to the revision of royalty gallonage rates, and an excess of $1,937,759 (40.1%) under 'Royalty - Television Broadcasts Ltd.' resulting from adjustment of royalty payments for 1973 and 1974.
Head 8- Fees and Receipts other than Appropriations-in-Aid
Of the 21 subheads under this Head for which estimates were provided 11 yielded more revenue than expected and 10 yielded less. A minor amount was collected on one subhead for which no estimate was provided. The significant excesses were $360,139 (12.6%) under 'Anchorage' because vessels of larger tonnage than anticipated anchored for longer periods; $2,011,001 (26.2%) under 'Buoy' because of increased usage of harbour mooring buoys; $3,026,341 (32.3%) under 'Hong Kong Macau Ferry Terminal - Passengers' because of an increase in passenger numbers; $7,484,324 (36.2%) under 'Companies' mainly due to the receipt of one exceptionally large capital fee in July 1976 and because col- lections in respect of fees on share premia were greater than originally anticipated; $292,531 (25%) under 'Difference in exchange' mainly due to exchange gains on the encashment and issue of British Postal and Money Orders; $3,503,440 (160.6%) under 'Overpayments in previous years' because of a change in the system for checking the final accounts for maintenance contracts; $2,166,646 (143.5%) under 'Other receipts' mainly because a number of fairly large surety bond payments relating to re-entered contracts were received during the year; and $1,339,015 (62.7%) under ‘Other sales' due to higher levels of activity than expected. The largest shortfall was $7,464,626 (37.3%) under 'Parking' for a number of reasons -- fewer new meters were installed than had been scheduled, there were delays in converting existing meters to the new higher rates and in implementing the extension of meter operation to Sundays and Public Holidays. Other large shortfalls occurred; under 'Vehicles and drivers' fees, $3,040,443 (10.3%) where, because of delays in the recruitment of driving examiners, fewer candidates for driving tests than anticipated were processed and fewer licences issued; under 'Departmental service and supervision', $3,554,027 (11.6%) mainly because progress on the Urban Council Building programme was slower than expected and there were delays in settlement of demand notes issued to the Council; and under 'Official certificates', $741,459 (35.1%) mainly because of delay in implementation of a proposal to increase fees for certain certificates issued under Fire Services Department regulations.
Head 9 - Revenue from Properties and Investments
There were significant variations from the estimates on five of the thirteen subheads. The largest in monetary terms, was a $56,265,141 shortfall under 'Interest' which represented a decrease of 20.9% from the estimate and was mainly due to a lower yield resulting from the lowering of interest rates during the year and a reduction in cash balances resulting from the purchase of equity in the Mass Transit Railway Corporation.
There was also a shortfall $1,790,864 (16.4%) under 'Crown land licences Urban area' mainly as a result of delay in settlement of additional premia duc under two large contracts. Three subheads recorded significant excesses, the largest
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