foreign registration fee of 20% of the value of a motor vehicle is payable in respect of any vehicle not produced within the British Empire. The duties on imported liquor range from $1.50 per gallon on beer to $4.00 on Chinese liquor and to $44.00 on European sparkling wines. A reduction in duty is allowed in respect of liquors manufactured or produced within the British Empire.
A
The duties on tobacco range from $1.95 per lb. on the lowest taxed unmanufactured tobacco to $7.00 per lb. on cigars. reduction in duty is allowed on tobacco of Empire origin and/or of Empire manufacture. A duty of 80 cents per gallon is payable on all light oils imported into the Colony, 40 cents per gallon on all heavy hydrocarbon oils used as fuel for any heavy oil road vehicle, and 10 cents per gallon on other hydrocarbon oils. Duty is payable on toilet preparations and proprietary medicines at 25% of ex-factory price in the case of locally manufactured goods, and 25% of f.o.b. prices in the case of imported goods. A duty of 24 cents per gallon is payable on Table Waters imported into or manufactured in the Colony. Excise duty is levied at the same rates on the above dutiable commodities manufactured in the Colony. Estate duty is charged on estates situated within the Colony on a sliding scale varying from 1% on $500 to 52% on $30,000,000 and over.
Assessment Tax.
As will be seen from the figures given in paragraph 3, Assessment Tax (Rates) is one of the largest revenue producing items. There is a general rate of 15% plus a water rate of 2% on assessed rateable value. Properties in outlying districts which have unfiltered water pay a water rate of 1%, and this rate is remitted altogether if no water is available.
New Taxes Introduced in 1947.
Increases on a wide range of licence fees and in charges for services by Government Departments were made, but the most significant additional revenue measure of the year under review was the introduction of a tax on earnings and profits.
The system of taxation is based on the normal Income Tax plan modified to suit local conditions. Whereas the basis of taxation under a normal income tax is, throughout, the individual, the basis of the tax introduced in Hong Kong is, wherever possible, the source of income. The tax is therefore divided into four separate taxes-Property Tax, Profits Tax, Interest Tax and Salaries and Annuities Tax. Property Tax is charged on the ownership of property the charge being made either direct on the owner or through the agency of the occupier who has right of recovery against the owner. Profits Tax is
the_owner. charged either as Corporation Profits Tax on corporations, or as Business Profits Tax on businesses as such and not on the proprietors thereof. Interest Tax is charged on all interest arising on any debenture, mortgage, bill of sale, loan, deposit or advance which is either payable under an instrument
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