2.47
4
20. The largest reduction in any one item this year as compared with 1936 again occurs in Assessed Taxes (Rates). The rateable value of the Colony has been reduced from $36,374,100 to $34,643,700, a decrease of 4.76%. Consequently the revenue estimate has been reduced. It is hoped that the figure of $5,600,000 will be attained. The reduction in rentals of both office property and dwellings con- tinues and the valuation for 1937/38 will, it is feared, shew a further contraction.
21. Pawnbrokers Licences have been reduced from $225,000 to $160,000 owing to several shops being closed. It is anticipated that the receipts from Estate Duty will increase owing to the higher rates effective from 1st July, 1936, and an additional $200,000 has been inserted for this. Owing to more metered services and the hope that water restriction will not be imposed it is anticipated that more revenue will be received and this item has been increased from $1,414.000 to $1,775,000. During 1935 $2,031,978 was received but it will be remembered that the charge for excess water was reduced towards the end of 1935 from 75 cents per 1,000 gallons to 50 cents per 1,000 gallons with a further 15% off for all who pay within 14 days. As 85% of the money is paid within 14 days it means that 85% of the excess water accounts is paid for at 424 cents per 1,000 gallons instead of the old rate of 75 cents, a very substantial reduction.
22. The estimated receipts from the Betting Tax $120.000 and from the Enter- tainment Tax $200,000 remain the same as in 1936, and it is hoped that with any improvement in trade and the spending power of the people these receipts will tend to increase. In the first year that these taxes were instituted the Entertain- ment Tax produced $334,574 and the Bets and Sweeps Tax $323,685. There has been a steady decline ever since to the above-mentioned figures.
23. It is proposed to increase the Motor Vehicle Licences from 30% to 50% with effect from 1st July, 1937. It is estimated that this will produce a further $42,000 which added to the revised estimate of $190,000 for 1936 makes $232,000 for 1937.
24. Head 4. Fees of Court or Office. &c., has been increased from $2,172,550 in 1956 to $2,397,500 in 1937. There are various small increases and decreases on the many sub-heads of this Head of revenue. The principal increases are shewn under Survey of Steamships from $90,000 to $130.000, as the fees were increased from 1st July, 1936; Slaughter House Fees from $164,000 to $220,000 cwing to the increased fees; Crown Leases from $30,000 to $48,000 as it is anti- cipated that there will be a substantial increase in the issue of fresh leases; and China Companies Fees from $200,000 to $210,000 as more registrations are expected. Owing to the opening of the Queen Mary Hospital, there will be more accommodation for patients and it is anticipated that Medical Treatment Fees will yield a further $20,000. The lower exchange necessitates the receipts from Widows' and Orphans' Pensions Contributions being increased from $338,000 to $406,600. A new item. Sale of Sand, appears for the first time. Under Ordin- ance No. 50 of 1935, the sale of sand was made a Government Monopoly and the receipts from this source for the year are estimated at $70,000.
25. The decreases of importance are Court Fees from $98,000 to $85.000. This is a variable form of revenue but the amount for 1936 was overestimated; Gunpowder Storage from $32,000 to $22,000 as less explosives are now stored. Income from Earth and Stone Permits (New Territories) is reduced from $16,000 to $5,600 since Government has taken over Sand Monopoly. Medical Examination of Emigrants at $180,000 was overestimated for 1936 and has been reduced to $150,000: Public School Fees are down from $250,000 to $235,000. When Slaughter House Fees were increased a small reduction was made in charges for motor transport of the carcases and the anticipated revenue has been reduced by $3,000.
- 5 -
26. The receipts under Head 5, Post Office, have been increased from $1,790,000 to $2,049,800 owing to the increase in the principal postage rates which came into effect on the 1st June, 1936.
27. The Kowloon Canton Railway figures are $1,323,000 for 1936 and $1,100.150 for 1937, a reduction of $222,850. Of this sum $125,000 is due to the closing of the gambling establishment at Shum Chun in Chinese territory and $30,000 to a fulling off in local traffic. A reduction in the number of trains hauled over the Chinese Section by British engines accounts for the decrease of $61,000 in receipts from this item.
A new
28. There is only one item under Head 7. Rent of Government Property, that calls for any comment. Receipts from markets which have been reduced by $34,000 owing to the forthcoming demolition of the Central Market. market, however soon it is started, will not be ready for the next two years and in the meantime the receipts from market stalls are bound to shew a large reduction,
29. The item. Interest, has been reduced from $200,000 in 1936 to $96,500, as less cash is available for short term investment.
30. Head 9, Miscellaneous Receipts, shows an increase owing to a new item which has been inserted, viz., Trade Loan $500,000. In the Statement of Assets and Liabilities on the 31st December, 1935, two items appear-Trade Loan Reserve $1,080,801.79 and Trade Loan Outstanding $548,500.50. As the capital sum outstanding now only amounts to the latter figure, there is now no longer any reason to reserve much more than that sum against any liabilitity. It has, there- fore, been decided to write on to revenue $300,000 leaving the sum of $32,301.29 in the account to meet contingencies.
31. The estimated receipts from Land Sales have again had to be reduced and unless conditions improve it is not anticipated that more than $206,000 will be received.
32. Expenditure is estimated in 1937 at a total of $32,259,160 as under :-
Ordinary Expenditure
Extraordinary Expenditure
$30,617.130 1,642,030
$32,259,160
and for purposes of conversion the dollar has been taken at Is. Sd. throughout. The following is a summary of the Estimated Revenue and Expenditure for 1937.
Revenue.
Expenditure.
Ordinary Trade Loan A/c. Land Sales
$28,054,250 500,000
206,000
Ordinary Extraordinary
.$30,617.130 1,642,030
$28,760,250
This shews a deficit on the year's working of $3.498,910.
$32.259,160
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