FINANCIAL STRUCTURE
Audit
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The audit of all government accounts and those of more than 80 statutory and non-statutory funds and public bodies is carried out by the Director of Audit. His appointment, 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 direct 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 four groups of commodities-alcoholic liquors, tobacco, certain hydro- carbon oils and methyl alcohol-irrespective of whether they are imported or manu- factured locally.
On liquors, the basic duty rates range from $2.70 per gallon on Hong Kong brewed beer to $123 per gallon on brandy. On tobacco, rates range from $3.70 per pound on Chinese prepared tobacco to $19.80 per pound on cigars. Rates on hydro- carbon oils are $1.60 per gallon on diesel oil for road vehicles and $2.20 per-gallon on motor and aircraft spirits. The rate for methyl alcohol is $9.90 a gallon.
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All firms engaged in the import, export, manufacture or sale of dutiable com- modities must be licensed.
Rates
Rates are levied on landed properties on the basis of the rateable value-which, briefly stated, is the annual rent at which a property might reasonably be expected to be let. The annual charge for the year' commencing April 1, 1976 was 18 per cent of the rateable value, payable quarterly in advance. Exceptions were Tsing Yi Island, where the charge was 11 per cent, and a number of other developed and developing parts of the New Territories where the charge was nine per cent. In the urban areas the charge of 18 per cent was apportioned to general rates (12 per cent) and Urban Council rates (six per cent), the latter being paid to the council to finance many of its activities. These percentages may be varied from one year to the next by resolution of the Legislative Council.
The valuation lists, prepared by the Commissioner of Rating and Valuation, cover all rated properties on Hong Kong Island, in Kowloon and New Kowloon, and in certain specified parts of the New Territories. Rateable values for properties in a further eight developed and developing parts of the New Territories, specified during 1976 for rating, will be effective from April 1, 1977. Following a complete review of all rateable values carried out during the year, up-to-date valuation lists will come into effect on April 1, 1977.