FINANCIAL STRUCTURE
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now totalling $763.2 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 3,300 university students received interest-free loans totalling $10.5 million. At March 31, 1974, liquid assets amounted to $68.9 million and outstanding commitments $180.2 million.
The Lotteries Fund, established in 1965, is mainly for financing by grants and loans the 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 $50.3 million was credited during the period June 1965 to March 31, 1974 by which date grants and loans amounting to $48.3 million had been approved. A further sum of $2.6 million, being unclaimed prize money as at March 31, 1974, is held in deposit.
The audit of all government accounts and those of more than 70 special funds of a public or quasi-public nature, is carried out by the Director of Audit. This appoint- ment, tenure of office, duties and powers are prescribed in the Audit Ordinance. To ensure the director's complete independence in the exercise of his functions, the ordinance provides that he shall not be subject to the direction or control of any other person or authority, and also prescribes certain safe-guards against his dismissal or premature retirement.
The annual report and certificate of the Director of Audit on the accounts of the Hong Kong Government, which he submits to the Governor, is presented to the Legislature and transmitted to the Secretary of State.
Duties
There is no general tariff on goods in Hong Kong but three groups of com- modities-alcoholic liquors, tobacco and hydrocarbon oils are subject to excise duties whether they are imported or locally manufactured. In general, preferential rates are charged on local manufactures and imports from Commonwealth countries.
On liquors, the basic duty rates range from $1.80 per gallon on Hong Kong brewed beer to $97 per gallon on non-Commonwealth brandy. On tobacco, rates range from $2.50 per pound on Chinese prepared tobacco to $14.05 per pound on non-Commonwealth cigars. Rates on hydrocarbon oils range from $1.30 per gallon on diesel oil for road vehicles to $1.80 per gallon on motor and aircraft spirits.
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, or part thereof, held or occupied as a distinct or separate tenancy. The valuation lists, prepared by the Commissioner of Rating and Valuation, cover Hong Kong Island, Kowloon, New Kowloon and parts of the New Territories. The lists are frequently revised to bring them up-to-date. Rates are charged, with few exceptions, at 15 per cent per annum on the assessed rateable values. In the urban areas this percentage charge is apportioned to general rates (nine per cent) and Urban Council rates (six