FINANCIAL SYSTEM AND ECONOMY
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ments tax, estate duty, hotel accommodation tax, earnings and profits tax and stamp duty. In the financial year ending on March 31, 1982 it is anticipated that the yield from internal revenue will amount to $11,486 million compared with actual collections of $11,232 million for the previous year ended March 31, 1981. The estimate for 1981-2 takes account of the cost to internal revenue, amounting to $1,250 million, of tax concessions designed to benefit various classes of taxpayers as announced by the Financial Secretary in his 1981 Budget Speech.
Betting Duty
Under the Betting Duty Ordinance, a duty is imposed on bets on authorised totalisators or pari-mutuels, and on proceeds of Mark Six Lotteries. The duty is assessed from the returns of the Royal Hong Kong Jockey Club which holds a monopoly for conducting such operations. The rate of duty on bets is either seven and a half per cent or 11 per cent (depending on the type of bet made), and is 25 per cent on the proceeds of lotteries. The anticipated yield for the financial year 1981-2 is $1,020 million compared with actual collections of $823 million for 1980-1.
Business Registration
Under the Business Registration Ordinance, all people operating businesses in Hong Kong are required to register and pay an annual fee of $175. Limited liability companies are under a similar obligation whether or not they carry on a business. Exemption from payment of the fee is granted when a business is carried on by a charitable institution, or when an unincorporated business is very small. The total yield from fees, service fees for copies of documents and other fees for 1981-2 is estimated to amount to $60 million compared with actual collections of $54 million for 1980-1.
Entertainments Tax
The Entertainments Tax Ordinance imposes a tax on the price of admission to cinemas and race meetings at rates which vary with the prices charged for admission. This averages out at approximately eight per cent in the case of cinemas and 28 per cent in the case of race meetings. For the 1981-2 financial year the estimated yield is $50 million compared with actual collections of $45 million for 1980–1.
Estate Duty
This duty is charged under the Estate Duty Ordinance and is imposed on that part of a deceased's estate which is situated in Hong Kong. Effective from May 29, 1981 estates valued at under $1 million (previously $600,000) are exempt. The rates of duty charged range from a minimum of 15 per cent (previously 10 per cent) on estates valued between $1 million and $1.5 million (previously $600,000 and $650,000) to a maximum of 18 per cent on estates valued in excess of $3 million. The estimated yield (after deducting $13 million due to the increased exemption limit) for the financial year 1981-2 is $237 million compared with actual collections of $251 million for 1980-1.
Hotel Accommodation Tax
This tax is levied under the Hotel Accommodation Tax Ordinance on hotel and guest house accommodation at the rate of four per cent on the accommodation charges paid by guests. For the 1981-2 financial year the anticipated yield is $51 million compared with actual collections of $42 million for 1980--1.