FINANCIAL STRUCTURE
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is charged on the total income from employment reduced by allowances which are at present: for the taxpayer, $7,000; for his wife, $7,000; for each of the first two children, $2,000; for each of the third to sixth children, $1,000; and for each of the seventh to ninth, $500. This makes a maximum allowance for children of $9,500. Premia paid for life insurance are allowed to an amount not exceeding one-sixth of the amount by which the income exceeds $7,000. Tax is charged on a scale starting at 24 per cent on the first $5,000 of the net income and increasing at each subsequent $5,000 stage until at $45,000 the maximum rate of 30 per cent is reached. The total Salaries Tax payable by any individual is restricted to an amount not exceeding the standard rate on his gross income.
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It is estimated that the revenue from Earnings and Profits Tax during the financial year 1967-8 will be $502 million.
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Estate Duty generally follows the lines of the British tax of the same name. Duty is assessed only on that part of an estate which is in Hong Kong. The rates of duty range from three per cent on estates valued between $100,000 and $200,000 to 25 per cent on estates over $4 million. Yield for the year ending March 31, 1968 is estimated at $15 million. ·
Stamp Duty is modelled on the British pattern and fixed duties are charged on various documents. The lowest is 15 cents on bills. of lading and receipts and the highest $20 on deeds. Ad valorem duty on various other documents ranges from 15 cents on $500 to $2 on $100. As from April 1, 1967, a fixed duty of $20 was sub- stituted for the $2 per cent ad valorem duty on conveyance of land where the sale price does not exceed $20,000 and the stamp duty was reduced to $1 per cent ad valorem duty where the sale price exceeds $20,000 but does not exceed $40,000. A special duty at the rate of three per cent is payable on the first conveyance of any parcel of land after September 1948. The estimated yield from Stamp Duty during the current financial year is $50 million.
Substantial revenue accrues from Entertainment, Dance Halls, Bets and Sweeps Taxes and it is estimated they will yield $52.9 million during the current year. Entertainment Tax is charged on the price of admission to places of entertainment, the rate varies with the amount charged, but averages about 22 per cent. Certain