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The main heads of taxation enforced in the Colony, with the yield of each for 1939, are as follows:-
(a) Duties on Liquor, Tobacco, Motor Spirit and Perfumed Spirit
(b) Port and Harbour Dues
(d) Estate Duty
(c) Rates (Assessed Taxes)
(e) Stamp Duties
(f) Entertainment Tax
(g) Bet and Sweeps Tax
$11,156,449.01 538,358.44 6,789,104.36 721,527.75 2,531,108.72 (h) Miscellaneous Licences. 351,988.95 248,713.01 3,231,022.84Considerable revenue is, however, derived from sources not strictly classifiable as taxation, i.e.
Excess Water Supply $2,212,035.34 Post Office $3,120,758.60 Kowloon-Canton Railway $912,904.86 Land Sales $2,139,818.81The largest item of revenue is derived from the assessment tax (Rates). The sum collected during 1939 represents 16.37% of the total revenue. There is a general rate of 15% plus a water rate of 2% on assessed rateable value. Properties in outlying districts which have unfiltered water pay a water rate of 1%, and this rate is remitted altogether if no water is available.
There is no general customs tariff in Hong Kong, import duties being confined to liquor, tobacco, hydrocarbon oils and perfumed spirit. There is no export tariff. The sale of opium, is a Government Monopoly, and all importation of opium other than by Government is prohibited. The importation of dangerous drugs is regulated in accordance with the terms of the Geneva Convention. Arms, ammunition, explosives and dangerous goods are subject to the normal Harbour and Police Regulations in regard to storage and movement. A special Foreign Registration fee of 20% of the value of a motor vehicle is payable in respect of any vehicle not produced within the British Empire.
The duties on imported liquor range from $0.70 per gallon on beer to $1.75 on Chinese liquor and to $26 on sparkling European wines. A reduction in duty is allowed in respect of brandy grown or produced within the British Empire.
The duties on tobacco range from $0.90 per lb. on the lowest taxed unmanufactured tobacco to $2.60 per lb. on cigars. A reduction in duty is allowed on tobacco of Empire origin and/or of Empire manufacture.
A duty of 60 cents per gallon is payable on all light oils imported into the Colony, and 30 cents per gallon on all heavy hydrocarbon oils used as fuel for any heavy oil road vehicle.
The only form of excise duty is the tax on locally manufactured liquor.
Stamp duties are imposed on various instruments and, where a consideration is involved, are mainly ad valorem. The following are examples of the duties charged -- Affidavits, Statutory Declarations, etc., $3; Bills of Exchange (inward) and Cheques, 10 cents; Bills of Lading, 15 cents when freight is under $5, 40 cents when freight is $5 or over; Bond to secure the payment or repayment of money, 20 cents for every $100 or part thereof; Conveyance on sale, $1 for every $100 or part thereof; Mortgages, principal security, 20 cents for every $100 or part thereof, Life Insurance Policy, 25 cents for every $1,000 insured; Receipts, 10 cents for amount over $20; Transfer of Shares, 20 cents for every $100 of market value.
No Hut Tax or Poll Tax is imposed in the Colony.