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supplies and a publicly owned underground railway is now being built. It should be emphasised that the greater part of the taxation raised to provide these services is redistributive. The average wage earner pays no income tax and there is no purchase tax or value added tax, except on smoking, drinking, vehicles and petrol. On the other side of the coin, a considerable part of government revenue is raised by profits tax on businesses and by income tax and rates on the middle class, most of which is spent on
services for the lower income groups.
14.
All this does not mean that there is not a great deal to do in Hong Kong. Life for the ordinary people is still far from being a paradise. Income per head is only just over a half of that in Britain. But it is well above that of most other countries in Asia, except Japan and Singapore. The economic achievements over the last quarter of a century
have been considerable and the fact that they have been made
under a British administered government is, perhaps, some reason for pride.
Economic Services Branch
17th November 1975
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