194
3
8. With the exception of Motor Spirit, every item under the Head of Revenue "Duties" shows a considerable decrease. The following table shows the actual col- lections for 1st six months in 1933 and the estimated Revenue for the 2nd half year :—
Estimate
1st Half 1933.
1933.
Import Duty on Liquor
Estimated Estimated 2nd Half Decrease.
1,300,000
494,700
27
1
37
31
Perfumed Spirits.
Tobacco
100,000
4,600,000
46,562
1,389,176
405,300 400,000
43,498
1,210,824
10,000
1,400,000
liquor
1,280,000
576,943
423,057
280,000
J}
18. The original estimated Expenditure for the year eliminating the sum of $500,000 from surplus balances being the final payment to the Admiralty for the sur- render of the Naval Arsenal Yard and Kellet Island was $34,699,247.
As the year opened with a surplus larger by $1,034,259 than was expected and the exchange con- tinued favourable, Council placed further sums at the disposal of the D). P. W. and in August approved supplementary votes for Public Works as under :—
Public Works Department Public Works Recurrent
Public Works Extraordinary
Total
.$ 61,740
60,000
509,918
Duty on locally manufactured
The anticipated decreases in import Duty on Liquor and Tobacco are due to higher exchange and to smaller consumption.
Locally manufactured Liquor is also affected by the depression and is not expect- ed to yield more than $1,000,000. It is also probable that the original estimate of the Tobacco Duties was unduly optimistic as only $1,380,176 was collected in the 1st six months instead of $2,300,000 as anticipated. Opium Revenue has fallen precipit- ously. In place of the $2,500,000 originally expected from this source less than half or $1,200,000 is likely to be collected.
9. The Revised Estimate for Port Dues $571,000 is $69,000 below the original estimate. This is due to higher Exchange.
10. On 12th June 1933, the Yaumati Ferry Company started to operate under the new franchise-five months later than the date originally fixed the new rates therefore affected the 1st half year's Revenue very little. The actual collection to 30th June amounted to $147,288. It is anticipated that the receipts for 2nd half year will reach about $207,711.
11. Motor Vehicle Licence fees are expected to drop $20,000 owing to the new method of collecting revenue from the public bus companies. Royalties appear as two new items and it is anticipated that the Treasury will benefit by $65,600 in res- pect of the Kowloon Motor Bus Co., Ltd. and $47,000 in respect of the China Motor Bus Co., Ltd. The figure for 1933 represents a half year's receipts as the monopolies started to operate as from 11th June 1933.
12. Assessed Taxes are expected to yield up to the Estimate i.e. $6,500,000.
13. Stamp Duties are unlikely to yield more than $2,136,000 against an estimate of $2,600,000 owing to the general fall in the value of stocks and shares and depres- sion in the property market.
14. Revenue from Water Excess Supply and Meter Rent continues to increase steadily and this year's yield is expected to produce an increase over the estimate of $250,000.
15. The Peak Hospital closed down in 1932 and the fees estimated for Medical Treatment show a decrease of $20,000.
16. The Kowloon Canton Railway is expected to yield $1,574,000 which is $290,650 more than the original Estimate. The speeding up of the Express train services has stimulated passenger traffic between Hong Kong and Canton. Local traffic to Shum Chun has also developed.
17. The new franchise for the Yaumati Ferry Company did not come into opera- tion until June 11th a delay of over 5 months. Consequently, Royalties will be small- er than the original estimate and will amount to $37,000 instead of $56,250 as anti- cipated.
$631,658
In calculating the estimates of expenditure exchange was taken at $1.=1/2. Actually it has worked out for the 9 months, January to September at $1.1/4d. The revised expenditure for the year based on departmental computation has now been settled at $32,564,261 and the budget for 1933 would therefore show a surplus of $462,739,
1934.
19. The estimated revenue for 1934 amounts to $31,731,625, a decrease of $1,295,375 as compared with 1933. Appendix "A" gives a summary of the increases in various licences, fees, etc. since last year's memorandum was published. A reduc- tion of the betting tax from 3% to 24% became effective as from 1st September 1933 under the Betting Duty Amendment Ordinance 1933.
20. The Revenue from Duties in 1934 is not expected to yield more than $5,665,000 which though an increase of $425,000 over the revised estimate for 1933 represents a decrease of no less than $2,265,000 on the original Estimate for that year. The excise duty on locally manufactured liquor which is not affected by ex- change is $180,000 down. This decline is due to the slowing down of business activi- ties in the Colony. The Import Duties on liquor and tobacco are down likewise by $300,000 and $1,800,000 respectively though the rise in exchange is a contributory factor. As mentioned previously the receipts from Tobacco were probably over estim- ated at the outset.
21. Under Port and Harbour Dues $105,000 less revenue is expected from Light Dues. This decrease results automatically from the rise in the rate of exchange and the reduction in the scale of duties which came into effect on April 1st, 1933.
22. The revenue from Opium is estimated at $1,300,000 as against $2,500,000 the original estimate for 1933. As mentioned in para. 8 the Opium is now supplied from the Singapore Monopoly, but local consumers dislike the brand and prefer the smuggled article.
23. It will be observed that the 1934 Estimated Revenue for Water Excess Sup- ply and Meter Rents is $2,000,000 against 1933 Estimate of $1,400,000 an increase of over 40%. The number of meters at the beginning of 1932 was 11,000; since then a further 10,000 meters have been installed and a corresponding expansion in revenue under this Head is expected. The individual small differences between the 1933 and 1934 Estimates of items not specifically mentioned in this memorandum are explained in the footnotes to the budget.
24. The expenditure estimates for 1984 total $33,142,695 of which $3,591,950 is for Public Works Extraordinary and $100,000 for work in connection with the New Government House Scheme.
Sterling commitments have been provided for in the estimates on the basis of $1.= ls/3d.
195