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foot a month, which covers rent, air conditioning, management and rates. The new rates will add 80 cents, or 2.4%, to the cost per square foot a month. Details of average rates increases for the main classes of property are set out in the Supplement to this Speech.
86. Rates in Hong Kong will remain low by international standards. A recent survey of office accommodation revealed that in the majority of cities surveyed, rates (or similar property-based taxes) represented more than 10% of the rents, with a few around 50%. Even after the proposed increase, rates will only be about 6% of rents in Hong Kong.
87. My proposal to increase rates by half a percentage point will increase general revenue in 1992-93 by about $940 million. The effect on inflation, as measured by the CPI(A), will be negligible at 0.14%.
Stamp Duty
88. I propose to extend the application of stamp duty to the sale or transfer of covered warrants. This is a logical extension of our existing tax system, since warrants are a routinely traded form of security. This measure will yield an additional $140 million
a year.
89. I should refer here also to a measure already passed into law by this Council. Stamp duty was imposed on sale and purchase agreements for residential property, by the Stamp Duty (Amendment) Ordinance 1992. This measure is designed to curb speculation in the domestic property market. I estimate that we will obtain an additional $500 million a year from this source.
Betting Tax
90.
I propose to increase the tax rate for standard bets from 10.5% to 11.5% and for exotic bets from 17% to 17.5%. These increases will take effect from the beginning of the next racing season.
91.
The Jockey Club has agreed to bear a significant proportion of the cost of the measure, and there should be no effect on turnover. I expect an additional yield of $390 million from this measure in 1992-93.
Duty on Diesel Fuel used by Pleasure Boats
92. I propose to eliminate an inconsistency in our excise duty system and extend the requirement to pay duty on light diesel oil to locally registered pleasure craft, with effect from 1 June this year. Given the rapid growth in recent years of the number of pleasure craft, most of which use diesel fuel, I expect an additional $80 million a year from this measure. Petrol used by such pleasure craft is already subject to duty.
Other Indirect Taxes
93.
I do not propose any other increases in real terms in indirect taxation. Nevertheless, those duties which are assessed on a specific basis, as opposed to ad valorem
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