264
Revised estimate 1966-67
Estimate 1967-68
Difference
SM
SM
SM
Total Recurrent Revenue
1,710.7
1,766.8
+ 56.1
Internal Revenue (Estate and Excess
Stamp Duties)
29.6
30.0
+
0.4
Fees of Court or Office (Repayment of
advances, Loans)
6.1
9.2
+
3.1
Land Sales
74.4
75.0
+
0.6
World Refugee Year Grants
0.5
0.3
0.2
Contributions Towards Projects
7.3
4.3
3.0
Colonial Development and Welfare Grants
0.3
0.3
Total Capital Revenue
118.2
118.8
+ 0.6
Total Revenue
1,828.9
1,885.6
+ 56.7
Estimate 1967-68
Revised estimate 1966-67
Approved estimate 1966-67
HEAD 1
DUTIES
$329,100,000
314,700,000
316,000,000
259,378,531
Actual revenue 1965-66
The revised estimate for 1966-67 is $1,300,000 down on that approved for the year due to lower receipts from duty on tobacco and on locally manufactured liquor than expected. Consumption of the former was affected by the higher duty imposed last year, while locally manufactured liquor has had to face strong competition from imports from China and has lost some ground to them. The estimate for 1967-68 anti- cipates an improvement of $14,400,000 on the revised 1966-67 estimate, principally because of the continuing expansion in demand for hydrocarbon oils and imported intoxicating liquor. Some increase in imported tobacco revenue is also expected.
HEAD 2 — RATES
Estimate 1967-68
Revised estimate 1966-67 Approved estimate 1966-67 Actual revenue 1965-66
$278,000,000
250,600,000
242,750,000
224,022,848
Revenue from rates continues to expand. The revised estimate for 1966-67 shows an increase of $7,850,000 over the approved figure and the estimate for 1967-68 anticipates a further increase of $27,400,000. The substantial increase estimated for 1967-68 anticipates the many assessments to be made in respect of new buildings in Hong Kong and Kowloon. Rates on these assessments will more than offset some loss in rates arising from reductions in rateable values as a result of the annual revaluation of property in the Colony.
HEAD 3— INTERNAL REVENUE
Estimate 1967-68
Revised estimate 1966-67 Approved estimate 1966-67
Actual revenue 1965-66
$605,500,000
599,200,000
572,500,000
526,641,915
The revised estimate for 1966-67 represents an increase of $26,700,000 on the approved estimate and a further increase of $6,300,000 is anticipated for 1967-68. Earnings and Profits tax accounts for approximately three quarters of the revenue under this head and rather more than three quarters of the total increase. A further appreciable rise in the number of employees coming into the tax chargeable bracket is a not insignificant factor in this increase. Estate duty collections were better than expected in 1966-67 and it is anticipated that, with possibly easier credit conditions in 1967-68, improved collections will continue, although there will be some loss of revenue as a result of the proposal to reduce the top rate of Estate duty from 40% to 25%. This loss is estimated at $2 million. Both Bets and Sweeps tax and Dance Hall tax show significant decreases. The former is probably due to competition from Macao greyhound racing while the latter reflects the full effect of the Miscellaneous Licences (Amendment) Regulations 1965. The aggregate seating capacity of dance halls has fallen about 14%.
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