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3
The object being to assess the duty on medicated spirits by the alcoholic content and not as heretofore as though the contents were 100% alcohol. The amounts in weight represent the equivalent to the standards of the British Pharmacopoeia which are given in volume. Further alterations were again made on 30th June when the assessment was placed on a still more scientific basis and the rate of duty on 100% alcohol was halved from $10 to $5 per gallon as it was found that the old rate bore too heavily on cheap perfumes. The duty is now as under :-
per gallon. On all spirituous liquors other than intoxicating liquors, but including spirits
of wine or arrack, containing not more than 24% of alcohol by weight.... $1.20 For every one per cent of additional alcoholic strength by weight
.05 The revenue from this source originally estimated at $150,000 is now reduced to $100,000.
6. The Betting Duty Ordinance was passed on 18th December, 1931. This provides for a duty of 3% on the takings of totalisators or parimutuels and a duty of 5% on cash sweep tickets. The estimates for 1932 included a sum of $250,000 as the receipts from this source but it is hoped that over $800,000 will be taken. The above measures were brought in to increase the revenue of 1932. The Inland Postage rate of China was increased by the Nanking Government this year from 4 cents to 5 cents per oz. and this Colony in consequence increased its postage rates to China to 5 cents per oz. as from 13th June, 1932. In paragraph 8 of the memorandum on the financial position published with the 1932 draft Estimates it was stated in dealing with the question of increasing licences and fees, "There still remain under consideration various other licences and fees". A table of those alterations, which have been made since that memorandum was printed, is attached as Appendix A,
7. The total revenue for the half year endling 30th June amounted to 16,913,940. This is $81,815 less than one half of the estimate of $33,991,510 for the whole year. The revised estimate for 1932 has been placed at $33,152,674 or $838,836 less than the original estimate.
8. The principal sources of revenue are shewn in the following table :—
Import Duty on Liquor
Estimate 1st Quarter 2nd Quarter
1932
Total 1st
Half Year
Tobacco
Duty on Locally Manufactured Liquor
Port and Harbour Dues
Liquor Licences
Opium Monopoly
Assessed Tax (Rates)
Estate Duty
Stamp Duties
Water Excess & Meter Rents
Message Fees (Wireless)
Postage
Kowloon Canton Railway
1,100,000
Rent of Government Property
1,407,300
Land Sales
1,750,000
Total
$1,340,000 329,686 268,374 598,060
4,800,000 1.279,574 744,900 2,024,474
1,000,000 344,610 277,746 622,356
793,000 199,307 205,872 405,179
400,000 205.955
53,919 259,874
3,000.000 670,983 610,985 1,281,968
6.200,000 1.514,859 1,581,941 3,096,800
700,000 307,351 281,173 588.524
2,800,000 716,418 606,272 1,822,690
1,020,000 388,918 260,476 649,394
800,000 175.781
184,816 360,047
1,540,000 301,124 294,371 595.495
844,807 303,064 647,871
258,420 414,942 678,362
306,805 843,245 650,050
28,650,800 7,844,548 6,431,596 13,776,144
9. It will be seen that there is a short fall on liquor and tobacco duties, due to the rise in the dollar. There has, however, been a considerable increase in the revenue from locally manufactured liquor owing to the slightly preferential rate given to locally produced spirit by the use of the conventional dollar for the imported variety. The Opium Monopoly is losing ground and shows a considerable falling off. The Treasury have had one or two windfalls in Estate Duty but Stamp Dudies are less due (a) to the higher dollar and (b) fewer transactions. Water Excess and Meter Rents continue to expand and Railway Receipts are very satisfactory. Both postal receipts and wireless message fees are below the estimate. Land Sales are disappointing and shew a large decrease when compared! with the estimate and a still greater decrease when compared with the receipts for the 1st half of 1931 which amounted to $1,429,296. It is most unlikely that the estimate of #1,750,000 for 1932 from this source will be realised.
10. Expenditure for the year was originally estimated at $34,981,661, including the sum of $1,000,000 from surplus balances being part payment to the Admiralty for the surrender of the Naval Arsenal Yard and Kellet İsland. As the Estimates were based on $1-1s./- the Colony's commitments on account of sterling transactions were materially lightened when the dollar rose above 18/-, considerable savings or under-expenditure being shown on such services as Personal Emoluments, Pensions and Public Debt. was, therefore, decided that further funds could be placed at the disposal of the Director of Public Works and by a resolution of Council dated 30th June, 1932, supplementary votes were approved as under :-
Head 35, Public Works Department...
35
36, Public Works Recurrent
,, 37, Public Works Extraordinary
It
$10,500
389,500
346,950
$746,950
The revised estimate of expenditure for the year is now placed at $32,687,500 and as things are at present it is estimated that the budget for 1932 will shew a surplus of $465,174 and that the year will close with an excess of Assets over Liabilities of $11,812,803 as compared with $11,347,629 on the 1st January, 1932.
1933.
11. The estimated revenue for 1933 amounts to $34,002,575, an increase of $11,065 over the estimates for 1932. No additional taxation has been proposed. As a result of the general overhaul of taxation undertaken during 1931 referred to in paragraph 6 above, certain increases in fees and licences did not become effective until late in 1931 and during the earlier part of 1932, and consequently could not be included in the revenue figures of the 1932 printed estimate. This explains the use of the words "In- creased fees' in the footnotes, to indicate that the receipts for 1933 are anticipated to be higher than the estimated receipts for 1932.
12. The import duty on liquor and tobacco shows a falling off due to the higher rate at which exchange has been estimated for 1933 as compared with 1932. The excise duty on locally manufactured liquor is, nowever, estimated at rather more than in 1932 as the import duty affords a slight preference to this trade. The Opium Monopoly shews a large decline.
Assessed Taxes (rates) and Water Excess Supply and Meter Rents are growing yearly. The estimated receipts from the Entertainment Tax have been reduced for 1933 having been over-estimated in 1932. Post Office receipts both on account of Postage and Radio Message Fees were over-estimated for 1932, the anticipated revenue from the increased postal rates not having materialised and there has also been a large decline in the number of parcels despatched. The passenger service of the Railway continues to grow owing to the speeding up of the time to Canton due to the new Superheated Locomotives. Land Sales are falling off and the estimated receipts for 1933 are placed at the same figure as the revised estimate for 1932.
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