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FINANCIAL STRUCTURE
of $9,500. There is also an allowance for life insurance premia not to exceed 10 per cent of the capital sum insured or one-sixth of the amount by which the income exceeds $7,000. The sliding scale of tax starts at 24 per cent on the first $5,000 of net income and increases at each subsequent $5,000 stage until at $45,000 a maxi- mum rate of 30 per cent is reached, with a subsequent limitation that the total Salaries Tax chargeable cannot exceed 15 per cent of gross income.
It is estimated that the revenue from Earnings and Profits Tax during the financial year 1969-70 will be $598 million.
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, 1970 is estimated at $18 million.
Stamp Duty is modelled on the British pattern with fixed duties and ad valorem duty being charged according to the type of docu- ment. The lowest fixed duty is 15 cents on bills of lading and receipts and the highest $20. Ad valorem duty ranges from 25 cents on $1,000 to $2 on $100. For conveyance of land there is a fixed duty of $20 where the sale price does not exceed $20,000, one per cent ad valorem duty where the sale price exceeds $20,000 but does not exceed $40,000 and two per cent where the consideration is in excess of $40,000, with provision for marginal relief. A special duty at the rate of three per cent payable on the first conveyance of any parcel of land after September 1948 was repealed with effect from February 27, 1969. The estimated yield from stamp duty during the current financial year is $80 million.
Substantial revenue accrues from Entertainments, Dance Halls, Bets and Sweeps Taxes and it is estimated they will yield $61.1 million during the current year. Entertainments 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 types of entertainment given for charitable or educational purposes are taxed at a lower rate or may be exempt. Public Dance Halls Tax exacts a levy of 10 per cent on all dance halls charges. Bets and