FINANCIAL STRUCTURE
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duties are levied on the same products 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-Commonwealth 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 unmanufac- tured tobacco of Commonwealth origin and to cigars, cigarettes and pipe tobacco of Commonwealth origin or manufacture.
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 reduced rates. 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 doubled over the last six years. The estimate for 1967-8 is $278 million.
There are few exemptions. Premises used for educational, chari- table and welfare purposes are rated, but most of the bodies running