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PUBLIC FINANCES
which remains after deducting the following allowances: allowance for taxpayer, $7,000; allowance for taxpayer's wife, $7,000; allow- ances for taxpayer's children, from $2,000 for the first child to $200 for the ninth child; allowance for life insurance premiums, the amount (within certain limits) paid as life insurance premiums. Under no circumstances may any charge for Salaries Tax exceed an amount equal to the standard rate (12%) on the total income before deducting any allowances.
It is estimated that the revenue from Earnings and Profits Tax during this financial year will be $142,800,000.
Estate Duty. This tax was first introduced in 1931. It has always been modelled on the Estate Duty of the United Kingdom, and in 1959 the Estate Duty Ordinance was extensively amended to make it conform with the latest practice in the United Kingdom. The tax is charged only in respect of that part of the estate which is in Hong Kong and no charge is made on assets outside the Colony. The rates of duty range from 2% on estates valued at between $50,000 and $100,000 (both figures inclusive) to 40% on estates valued at over $15,000,000. The estimated yield for the financial year ending on 31st March 1961 is $12,500,000.
Stamp Duty. This tax is also modelled on the United Kingdom Stamp Duty. Fixed duty is charged at various amounts of which the lowest is 10 cents (on proxy forms) and the highest is $20 (on deeds). Ad valorem duty ranges from 10 cents on $500 to $2 on $100. There is a special duty of 3% payable on a conveyance of land if this is the first sale of that land since September 1948. The estimated yield from Stamp Duty during the current financial year is $35,000,000.
Entertainment, Dance Halls & Bets and Sweeps Taxes. These three taxes produce substantial amounts of revenue and for the present year it is estimated that they will yield $31,100,000. Entertainments Tax is charged on the price of admission to all places of entertainment. The amount of tax payable varies with the amount charged for admission but it averages approximately 22%. Certain types of entertainment given for philanthropic, chari- table, educational or artistic purposes are exempt from tax or attract a lower rate. The Public Dance Halls tax is a levy of 10% on all dance hall charges and the Bets and Sweeps tax imposes 5% on totalizator receipts and 25% on cash sweepstake receipts.