TNAG-0453-FCO40-518-Budget-of-Hong-Kong-1974-1975-1975 — Page 207

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Mr Stuart

Mr Youde

Thank you

14/3.

PA

HONG KONG REVENUE

1.

Mr Youde has asked for a note on the sources of Hong Kong's

revenue.

2. The latest breakdown available is that produced in connection with the 1973 budget. Revenue for this current year is likely to be broadly on the same lines. The estimated revenue for 1973/74 showed that Hong Kong #1,290m (27) was raised in direct taxes. (principally earnings and profits tax); Hong Kong $1,594m (34%) in in direct taxes, (principally excise duties, stamp duties and rates); and Hong Kong $1,838m (39%) from other revenue sources, (the principal ones being provisions of goods and services and income from properties and investments).

3. I attach a Hong Kong Government paper "Supporting Financial Statements and Statistical Appendices" which provides more detail. Appendix IV gives actual and estimated revenue by source for the decade up to 1973/74, and Appendix V the same material in percentage breakdown.

M A Goodfellow

(HKIOD)

12 March 1974

Mr Yayde

an overall

14/3

maximum at

AD

we said

the earnings tax is

15% on earned

income. The

reason

Why Hong Kay is able to

Pon

a

welfare

economy on

such low

low rates

is parthy

expardis,

Do

Hat revenue

the cconomy 's

is always tending to

ontstrip planned expenditure, and partly that

that the

Mary Kay have

have vistralls

no

public debt.

Af

present debt servicing takes about 0.1% of annual