40
FINANCIAL STRUCTURE
table waters and methyl alcohol, are subject to import duty. Excise duties are levied on the same products when manufactured locally. All firms engaged in the import, export, manufacture, or sale of dutiable commodities must be licensed.
The rates of duty are, in general, low. A preferential rate of duty for liquor of Commonwealth origin is at present levied at between 66 per cent and 89 per cent of the rate for non-Common- wealth liquor; locally-produced beer enjoys a further preferential margin over Commonwealth beer. Duty on all types of liquor ranges from $1.60 per gallon on locally brewed beer to $73 a gallon for liquors and spirits of non-Commonwealth origin.
The scale of duties on imported tobacco-ranges from $2.50 a pound for Chinese prepared tobacco to $11.25 a pound on non- Commonwealth cigars. Preferential rates are granted for un- manufactured tobacco of Commonwealth origin and to cigars, cigarettes and pipe tobacco of Commonwealth origin or manufac- ture. The duty rates on all types of tobacco except Chinese prepared tobacco were raised by $2 per pound in February 1966.
The duties on motor spirits and other light or heavy oils now stand at $1.80 and 10 cents a gallon respectively. The general rate of duty on diesel oils for road vehicles is $1.30 per gallon, although public omnibus operators and marine and industrial users pay much reduced rates. In February 1966 duty rates on fuels (both motor spirit and diesel oil) for road vehicles except public omnibuses were raised by 30 cents per gallon. The rates of duty on table waters and methyl alcohol are 48 cents and $7.50 per gallon respectively.
RATES
Rates are levied on the basis of the annual letting value of land or a building held or occupied as a distinct or separate tenancy. The valuation list covers the rating areas of Hong Kong Island, Kowloon, New Kowloon and part of the New Territories. In Hong Kong Island, Kowloon and New Kowloon rates are charged, with a few exceptions, at 17 per cent per annum of rateable value. In those parts of the New Territories which are statutorily subject to rates the charge is 11 per cent. The valuation list is prepared by the Commissioner of Rating and Valuation and is frequently revised to bring it up-to-date. Revenue from rates has more than