ENG-1952 — Page 73

PUBLIC FINANCE AND TAXATION

amounting to $75,681,382, has been charged off during the two years ending 31st March, 1952, to the expenditure head "Miscellaneous Services" and the balance of $4,323, 154 remains charged to an advance account pending the raising of further funds.

Two other loans, in respect of Colonial Development and Welfare Schemes, although not strictly Public Debt, were met in the first instance from expenditure, re-imbursements by the Colonial Development Fund being credited to the Colony's general revenue. These loans are as follows:-

D. 994-Agricultural Village Depots Recurrent

Expenditure

D.1066-Vegetable Market Lorries

Earnings and Profits Tax

$132,000

$300,000

$432,000

This tax, introduced for the first time in 1947, falls short of a full income tax. It comprises four separate

taxes:

Profits Tax

Salaries & Annuities Tax

Interest Tax

Property Tax

Tax is chargeable at the full standard rate (12% in 1952/53) on the Hong Kong profits of corporations and businesses and on interest payments, but in other cases there is provision for allowances or for tax to be assessed at a proportion or a multiple of the standard rate. An individual who is a resident of the Colony may elect to be personally assessed on his total local income, in which case he receives the advantage of personal allowances for which he might not otherwise be eligible.

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