REVENUE
5. Total revenue exceeded the original estimate by $701,413,881 (11.3%). In the following table the original and revised estimates of revenue are compared with actual revenue:
fall in prime tax' had a facilities an Kong Lotte
Head of Revenue
Original Estimate
Revised Estimate
Actual Revenue
Excess or Shortfall on Original Estimate
37.5% mor
$
$
$ %
year and pa
1 Duties
2 General Rates
3 Internal Revenue
647,900,000
680,107,000
615,000,000
617,500,000
680,660,220 + 32,760,220 5.06 618,721,090 + 3,721,090 0.61
years but tl
3,155,000,000
3,460,000,000
3,544,009,686
+389,009,686
12.33
Head 4-M
4 Motor Vehicle Taxes
49,000,000
100,000,000
101,988,761
+52,988,761 108.14
The single s
5 Fines, Forfeitures and Penalties
53,200,000
68,000,000
70,483,686 + 17,283,686 32.49
of a substa
6 Licences other than Appropriations-in-
Aid
185,040,000
193,462,000
7 Franchises
57,460,000
8 Fees and Receipts other than
Appropriations-in-Aid
9 Revenue from Properties and Investments 10 Land Sales
423,200,000
50,445,000
192,418,000 196,638,000 199,643,197 + 7,225,197 377,916,000 303,283,000 322,914,418 55,001,582 14.55 603,500,000 557,291,641 +134,091,641 31.69
192,261,221 +- 7,221,221
51,297,494
6,162,506
3.90
Head 5 - Fi
10.72
There were
scheme' wa
3.75
for moving
the original
(38.6%) un
estimate wa
+ 8,183,152 +110,093,315
6.96
trade decla
34.05
these declai
+701,413,881
Head 6 - L
11 Reimbursements other than
Appropriations-in-Aid
12 Excess Appropriations-in-Aid
117,611,000 122,750,000 125,794,152 323,304,000 379,683,000 433,397,315
Total Revenue 6,197,049,000 6,775,368,000 6,898,462,881
6. Excesses and shortfalls are shown in detail in Statement 3. The major variations from estimates were:
Head 1 - Duties
All of the subheads produced more revenue than expected. The two major variations were in duties on 'Imported intoxicating liquor' ($27,765,090 or 15.9%) which yielded more than estimated due partly to an upwards revision of the duty rate in December 1976 and partly to an increase in sales to consumers, and in duties on ‘Imported liquor other than intoxicating liquor' ($1,071,172 or 36.9%) which also yielded more than estimated mainly because of a significant increase in sales of perfumery products.
Head 2- Rates
There were no major variations under this Head. The subhead for ‘Kowloon (including New Kowloon)' produced $5,876,270 or 2% more than anticipated and the subhead for 'Hong Kong' also produced slightly more ($2,146,331 or 0.9%) than anticipated. There was a relatively minor shortfall of $4,301,511 or 4.5% under the subhead for 'New Territories'.
Head 3 - Internal Revenue
All of the subheads produced more revenue than expected. There were minor excesses on each of the three small subheads 'Business registration fees', 'Entertainment tax' and 'Hotel accommodation tax' and significant excesses on all but one of the major subheads. From 'Earnings and profits tax' the yield was $270,704,518 or 11.1% more than anticipated, made up as follows: Excesses:
Corporation profits tax Business profits tax Personal assessment Property tax
Salaries tax
Less Shortfall: Interest tax
Net excess
$151.3 million (11% more than the estimate) $ 64.0 million (38% more than the estimate) $ 10.6 million (42% more than the estimate) $ 42.7 million (20% more than the estimate) $ 16.6 million ( 3% more than the estimate)
$285.2 million
$ 14.5 million (13% less than the estimate)
$270.7 million
The original estimates for Corporation and Business profits tax were over-pessimistic about the duration and effects of the general down-turn in the economy which occurred in 1974–75. In the event recovery was stronger than anticipated and additionally a modest recovery in the stock market buffered the effect of earlier losses and minimised the number of refunds in this sector. Fewer businesses than anticipated took advantage of the two instalment system for payment of their taxes and the yield from profits tax was consequently increased. The excess on Personal assessment reflected increased profits in the business sector and also the finalisation of certain assessments which had been deferred from the previous year because of practical problems arising as a result of the transition from a preceding year to an actual year basis of assessment. In the case of Property tax there was an increased yield because assessable values established as a result of the revaluation exercise completed by the Commissioner of Rating and Valuation in May 1976 were higher than anticipated at the time when the original estimate was prepared. The decrease in the yield from Interest tax was due to a
6
There were
expected an
because fev
being prepa
Hong Kong
Head 7 - Fi Out of seve than anticip were provid
-
- Cable and 'Royalty - 1 'Royalty-
Head 8 - F
Of the 21 s yielded less. were- $36 periods; $2 under 'Hon (36.2%) un :lections in r exchange' r (160.6%) ul maintenanc
payments re to higher le reasons fe
-
the new hig shortfalls o driving exa 'Departmer programme under 'Offic for certain
Head 9 - R There were a $56,265,1 a lower yiel the purchas
There was settlement
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