FINANCIAL STRUCTURE
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made with effect from the year of assessment 1970-1 for an allow- ance of $2,000 for dependent parents resident in Hong Kong, an allowance of $3,000 for a working wife and additional allowances of up to $3,600 for persons in the lower income brackets. 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 maximum rate of 30 per cent is reached, with a subsequent limita- tion 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 1970-1 will be $724 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. Estates valued at less than $200,000 are exempt from duty. The rates of duty range from five per cent on estates valued between $200,000 and $300,000 to 20 per cent on estates over $2 million. Yield for the year ending March 31, 1971 is esti- mated at $20 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. There is also an ad valorem duty of two per cent payable on lease premia. The estimated yield from stamp duty during 1970-1 is $126 million.
Substantial revenue accrues from Entertainments and Bets and Sweeps Taxes and it is estimated they will yield $66 million during the current year. Entertainments Tax is charged on the price of admission to cinematograph exhibitions and to race meetings at which totalisator or pari-mutuel betting is conducted. The rate varies with the amount charged but averages about 22 per cent. Certain cinema shows given for philanthropic, charitable or educational purposes are taxed at a lower rate or may be exempt. Bets and