ENG-1953 — Page 55

HONG KONG ANNUAL REPORT, 1953

Sinking Funds exist for the redemption of the Conver- sion Loan and the Rehabilitation Loan; the market value of these funds at the 31st March, 1953, being $4,493,120.60 and $11,743,532.60 respectively. The remaining two loans are each redeemable by annual drawings of 1/25th. The balance of the 4% Conversion Loan was duly redeemed on 31st August, 1953. Loan expenditure in excess of the amount raised under the Re- habilitation Loan, amounting to $82,004,536, has been charged off to Expenditure during the three years ending 31st March, 1953, leaving $771,633 remaining in an advance account.

Two loans have been received from the Colonial Develop- ment and Welfare Corporation for the use of the Vegetable Marketing Organization. They are as follows:-

D. 994-Agricultural Village Depots Recurrent

Expenditure

D. 1066-Vegetable Market Lorries

$148,000

300,000

$448,000

Earnings and Profits Tax

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

Profits tax

Salaries and Annuities tax

Interest tax

Property tax

Tax is chargeable at the full standard rate (124% in 1953/54) on the Hong Kong profits of corporations and bus- inesses, and on interest payments, but in other cases there is provision for allowances or for tax to be assessed at a propor- tion or a multiple of the standard rate. An individual who is

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