FINANCIAL STRUCTURE
29
received interest-free loans totalling $13.5 million. At March 31, 1975, liquid assets amounted to $58.6 million and outstanding commitments $198.4 million.
The Lotteries Fund, established in 1965, is mainly for financing by grants and loans the development of social welfare services. The fund started with a transfer from general revenue of $7.4 million and an additional $60.3 million was credited between 1965 and 1975 through the net proceeds of the Government Lotteries and of the auction of special vehicle registration numbers. At March 31, 1975, grants and loans amounting to $57.9 million had been approved. A further sum of $1.4 million, being unclaimed prize money, was held on deposit.
The audit of all government accounts and those of more than 80 special funds of a public or quasi-public nature is carried out by the Director of Audit. His 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 ordin- ance provides that he shall not be subject to the direction or control of any other person or authority. It also prescribes certain safeguards 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 entering Hong Kong but excise duties are charged on three groups of commodities-alcoholic liquors, tobacco and certain hydrocarbon oils-whether they are imported or manufactured locally. The pref- erential rates of duty which have applied to imports from Commonwealth countries are now being removed.
On liquors, the basic duty rates range from $2.40 per gallon on Hong Kong brewed beer to $103 per gallon on non-Commonwealth brandy. On tobacco, rates range from $3.20 per pound on Chinese prepared tobacco to $17.25 per pound on non-Commonwealth cigars. Rates on hydrocarbon oils are $1.30 per gallon on diesel oil for road vehicles and $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 (rateable value) of land or a building, or part of it, held or occupied as a distinct or separate tenancy. Valuation lists, which are frequently revised to bring them up-to-date, are prepared by the Commissioner of Rating and Valuation and cover Hong Kong Island, Kowloon, New Kowloon and parts of the New Territories. The valuation lists contain more then 400,000 separate assessments, having a total value of some $4,500 million.
Rates are payable by quarterly instalments and are charged, with few exceptions, at 17 per cent per annum on assessed rateable values. In the urban areas this percentage