The Stamp Duty Ordinance imposes fixed and ad valorem duties on different classes of documents relating to transfers of immovable property, leases and share transfers. In 2010-11, the revenue from stamp duties was some $51 billion, or about 14 per cent of total government revenue.
Betting duty is charged on the net stake receipts from betting on horse races and football matches and on the proceeds of Mark Six lotteries, all administrated by the Hong Kong Jockey Club. These are the only legal betting activities in Hong Kong. Betting duty on horse races is charged at progressive rates. In 2010-11, the rates of duty are 72.5 per cent on the first $11 billion of net stake receipts, 73 per cent, 73.5 per cent, 74 per cent and 74.5 per cent for each segment of $1 billion thereafter; and 75 per cent on the remaining net stake receipts. The duty for betting on football matches is 50 per cent on the net stake receipts. The duty on the proceeds of Mark Six lotteries is 25 per cent. The yield from betting duty in 2010-11 totalled some $14.8 billion, about 4 per cent of total government revenue.
Under the Dutiable Commodities Ordinance, excise duties are levied on only four types of commodities to be consumed locally-hydrocarbon oil, liquor, methyl alcohol and tobacco, irrespective of whether they are manufactured locally or imported. The Customs and Excise Department is responsible for collecting these duties. In 2010-11, the department collected duties of $7.55 billion (about 2 per cent of total government revenue).
The Rating and Valuation Department is responsible for the billing and collection of rates, which are levied on landed properties at a specified percentage of their rateable values. The rates percentage charge in 2011-12 was 5 per cent.
The rateable value of a property is an estimate of its annual open market rent at a designated date. Rateable values are reviewed each year to better reflect prevailing market rents. The current Valuation List took effect on April 1, 2011, with rateable values reflecting the rental values on October 1, 2010.
The Valuation List contained about 2.4 million assessments on March 31, 2011. The revenue from rates in 2010-11 was $9 billion, accounting for about 2 per cent of total government revenue.
To help ease the pressure on people arising from inflation, the Government waived rates for the four quarters from April 2011 to March 2012, subject to a ceiling of $1,500 per quarter for each rateable property. As a result, about 82 per cent of properties would be subject to no rates in 2011-12, while the rates payable of the remaining 18 per cent of properties were reduced by the full concession amount of $1,500, costing the Government about $9.9 billion.
The Rating and Valuation Department is also responsible for the billing and collection of Government rent for properties held under land leases granted on or after May 27, 1985, or on the extension of non-renewable land leases. Government rent is levied at 3 per cent of the rateable value of the property and is adjusted in step with any subsequent changes in the rateable value. There were about 1.8 million assessments in the Government Rent Roll on March 31, 2011. Total