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FINANCIAL STRUCTURE
in 1947-8 to cover part of the cost of post-war reconstruction, is repayable in 1973-8; its sinking fund stood at $38.2 million on March 31, 1972.
In addition to the assets and liabilities referred to, there exist for special purposes the Development Loan Fund and a Lotteries Fund. The Development Loan Fund, now totalling $700 million, is used to finance social and economic development projects of a self-liquidating nature. The greater part has been used for low-cost housing schemes, but during the year 2,734 university students received interest free loans totalling $3.4 million. At March 31, 1972, liquid assets amounted to $55.2 million and outstanding commitments $107.1 million. The Lotteries Fund, established in 1965, is mainly for financing by grants, loans and advances the capital expenditure involved in the development of social welfare services. The fund started with a transfer from general revenue of $7.4 million and an additional $35.4 million was credited during the period June 30, 1965, to March 31, 1972 by which date grants and loans amounting to $31.4 million had been approved. A further sum of $1.7 million, being unclaimed prize money as at March 31, 1972, is held in deposit.
The audit of all public accounts and certain special funds is carried out by the Director of Audit, whose annual report on the accounts of the Hong Kong Govern- ment is presented to the Legislature and transmitted to the Secretary of State.
Duties
Consistent with Hong Kong's free port status, there is no general tariff, but four groups of commodities-alcoholic liquors, tobacco, hydrocarbon oils and table-waters -are subject to duty, whether they are manufactured in Hong Kong or imported. In certain cases, preferential rates are charged on local manufactures and imports from other Commonwealth countries.
Duties on methyl alcohol, and certain categories of hydrocarbon oils including liquefied petroleum gas, kerosene and lubricating oils, were abolished with effect from March 1, 1972.
On liquors, the basic rates range from $1.60 per gallon on Hong Kong brewed beer to $73 a gallon on non-Commonwealth liquors and spirits. On tobacco, they range from $2.50 a pound on Chinese prepared tobacco to $11.25 a pound on non- Commonwealth cigars; and on hydrocarbon oils, from 10 cents per gallon on fuel oils used for the production of electricity or gas to $1.80 a gallon on motor spirits. The rate for table-waters is 48 cents per gallon.
All firms engaged in the import, export, manufacture or sale of dutiable com- modities must be licensed.
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 Terri- tories. In the first three areas, rates are charged, with a few exceptions, at 17 per cent
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