A (2) 14
LIQUOR DUTIES.
60. In September, 1931, under the Liquor Ordinance No. 36 of 1931, Toilet and Medicinal Preparations and in fact any Alcoholic Liquids except Denatured Spirit, became dutiable. The duty was fixed at $10 per gallon for all such liquids containing over 10% of alcohol.
By a Resolution passed in the Legislative Council on the 17th day of March, 1932, under section 39 of the Liquor Ordinance, 1931, the duty of $10 per gallon on Medicated Spirits containing under 60% of alcohol was modified. In accordance with the recognized practice, drawback was allowed on export.
In June 1932, it was very quickly found, however, that this method of collection of duty was far from satisfactory and left a loophole whereby the public revenue might suffer considerable losses. The flat rate of duty per gallon was therefore abandoned, and by a Resolution passed in the Legislative Council under section 39 of the Liquors Ordinance, 1931, on the 30th day of June, 1932, it was resolved that the duty on such Medicated and Perfumed Spirits containing not more than 24% of alcohol by weight should be assessed for duty at $1.20 per gallon, and for every one per cent of additional alcoholic strength by weight 5 cents per gallon.
This new system of assessing the duty appears to be working satisfactorily.
THE FACTOR.
61. In February 1931 the Government decided, owing to the depreciation of the dollar, to assess the duties on Liquor and Tobacco on a Gold Unit or a Factor basis. This Unit or Factor was based on a 1s. 8d. dollar.
In order to arrive at the correct amount payable in Hong Kong currency for the duties on Liquor and Tobacco, which are laid down in dollars in the respective schedules of the Liquor and Tobacco Ordinances, such duties in dollars shall be multiplied by 20 (1s. 8d.) and then divided by a figure settled by the Colonial Treasurer. This figure represents the average opening selling rates of the previous month of the Hong Kong and Shanghai Bank for demand drafts on London.
It can therefore be recognized that owing to the fluctuation of the Hong Kong dollar the Factor varies proportionately.
The Factor, which is operative for a quarter, has been found to complicate the payment of drawbacks.
- A (2) 14
LIQUOR DUTIES.
60. In September, 1931, under the Liquor Ordinance No. 36 of 1931, Toilet and Medicinal Preparations and in fact any Alcoholic Liquids except Denatured Spirit, became dutiable. The duty was fixed at $10 per gallon for all such liquids containing over 10% of alcohol.
By a Resolution passed in the Legislative Council on the 17th day of March, 1932, under section 39 of the Liquor Ordinance, 1931, the duty of $10 per gallon on Medicated Spirits containing under 60% of alcohol was modified. accordance with the recognized practice, drawback was allowed on export.
In
It was very quickly found, however, that this mehod of collection of duty was far from satisfactory and left a loophole whereby the public revenue might suffer considerable losses. The flat rate of duty per gallon was therefore abandoned in June 1932, and by a Resolution passed in the Legislative Council under section 39 of the Liquors Ordinance, 1931, on the 30th day of June, 1932, it was resolved that the duty on such Medicated and Perfumed Spirits containing not more than 24% of alcohol by weight should be assessed for duty at $1.20 per gallon, and for every one per cent of additional alcoholic strength by weight 5 cents per gallon.
This new system of assessing the duty appears to be working satisfactorily.
THE FACTOR.
61. In February 1931 the Government decided, owing to the depreciation of the dollar, to assess the duties on Liquor and Tobacco on a Gold Unit or a Factor basis. This Unit or Factor was based on a 1s. 8d. dollar.
In order to arrive at the correct amount payable in Hong Kong currency for the duties on Liquor and Tobacco, which are laid down in dollars in the respective schedules of the Liquor and Tobacco Ordinances, such duties in dollars shall be multiplied by 20 (1s. 8d.) and then divided by a figure settled by the Colonial Treasurer. This figure represents the average opening selling rates of the previous month of the Hong Kong and Shanghai Bank for demand drafts on London.
It can therefore be recognized that owing to the fluctuation of the Hong Kong dollar the Factor varies proportionately.
The Factor, which is operative for a quarter, has been found to complicate the payment of drawbacks.
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