ENG-1946 — Page 36

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Assessment Tax.

As will be seen from the figures in paragraph 3, one of the largest revenue producing items is the assessment tax (rates). There is a general rate of 15% plus a water rate of 2% on assessed rateable value. Properties in outlying districts which have unfiltered water pay a water rate of 1%, and this rate is remitted altogether if no water is available. Owing to the condition of the waterworks after the Japanese occupation it was not possible satisfactorily to filter the water supply for a time, and consequently the normal water rate of 2% was reduced in some districts to 1% until 1st October, 1946, when a properly filtered supply was afforded to all districts.

New Taxes Introduced in 1946.

The following additional revenue measures were intro- duced during the latter part of the year:-

(a) Increases in the duty on imported liquor and tobacco, the present rates being as indicated on page 19. (b) An amendment to the Stamp Duty Ordinance to provide for an excess duty of 10% leviable on any increase in the purchase price of land or buildings in respect of which conveyances were executed on or after the 30th September, 1946. It was found that land prices since the re-occupation had risen very considerably as compared with the pre-war figures, in some cases by as much as 300%, a curious feature of the property market being that a vacant site or a site on which stood "blitzed" ruins com- manded a higher price than a similar site with habitable buildings. This was probably due to the rent restriction provisions, which did not apply to new buildings. The tax was imposed primarily for revenue purposes and also to check unhealthy speculation in property.

(c) A new tax on meals and intoxicating liquors sold in public hotels, restaurants and other licensed pre- mises. The tax is at the rate of 10% on the retail price of all liquors, irrespective of cost, and on meals costing more than $5.00.

(d) Increases in port dues, water charges, licence fees,

tax on sweepstakes, etc.

Expenditure.

The estimated expenditure for 1946/47 is $167,854,576. This is greatly in excess of the average expenditure for previous years, mainly owing to Special Expenditure items arising out of the Japanese occupation and the period immediately preceding it. These include:

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