FINANCIAL STRUCTURE
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four groups of commodities - alcoholic liquors, tobacco, certain hydrocarbon oils and methyl alcohol - irrespective of whether they are imported or manufactured locally.
On liquors, the basic duty rates range in equivalence from $0.60 per litre on Hong Kong-brewed beer to $27.06 per litre on brandy. On tobacco, rates range in equival- ence from $8.16 per kilogram on Chinese-prepared tobacco to $43.65 per kilogram on cigars. Rates on hydrocarbon oils are equivalent to $0.35 per litre on diesel oil for road vehicles and $0.48 per litre on motor and aircraft spirits. The rate for methyl alcohol is equivalent to $2.18 per litre.
All firms engaged in the import, export, manufacture or sale of dutiable commodi- ties 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 is determined by resolution of the Legislative Council and, for the year beginning April 1, 1977, the urban rate was set at 114 per cent, with lower percentages applicable in the New Territories. This rate is apportioned as 74 per cent to general revenue and 4 per cent to the Urban Council to finance many of its activities. Urban Council rates are not levied in the New Territories because the council does not operate there. Some areas in the New Territories have not been rated, but it is government policy to bring all developed and developing parts into assessment by a phased programme. The fourth phase of this programme was assessed to rates with effect from April 1, 1977, and the whole programme is scheduled for completion in 1980.
New valuation lists are prepared periodically as ordered by the Governor. This enables all assessments to be reviewed and rateable values updated in accordance with current market levels. The last review was carried out in 1976–7 and new valuation lists came into force on April 1, 1977. Having regard to the movement of rentals since the previous lists were prepared, the review resulted in considerably increased rateable values for almost all rated property. To cushion the impact on ratepayers, the per- centage rate charges were substantially reduced and a scheme of rate reliefs intro- duced, whereby no ratepayer will pay in the years 1977-8 and 1978-9 more than 331 per cent of the rates payable in the immediately preceding year. In the case of pre-war rent-controlled properties, the scheme will extend beyond 1978-9 to alleviate the greatly increased rate charges payable in many instances, due to a change in the basis of assessment.
Rates are payable quarterly in advance and the law imposes penalties for late pay- ment. Exemptions from rates are few. But the government generally provides financial assistance to non-profit-making educational, charitable and welfare organisations towards the payment of rates where the premises they occupy are being run to further an approved target or policy. No refund of rates is made in the case of vacant domestic premises, but half of the amount of rates paid may be refunded where non-domestic premises are vacant.
The estimated revenue from rates for 1977-8 is $1,057 million, of which about $336 million will go to the Urban Council.
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