ENG-1955 — Page 73

PUBLIC FINANCE AND TAXATION

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Import and Excise Duties. There is no general tariff, and for most goods Hong Kong remains a free port, so far as duties levied upon goods for protection or revenue purposes are concerned. There are, however, five groups of commodi- ties, either imported into, or manufactured in, the Colony for local consumption, which are treated as sources of revenue, and upon which duties are levied under the authority of the Dutiable Commodities Ordinance. These are liquor, tobacco, hydrocarbon oils, toilet preparations and proprietary medicines, and table waters.

A preferential rate of duty for liquor of Empire origin is levied at approximately 80% of the rate for non-Empire produce. Locally-produced beer is allowed a further pre- ferential margin over Empire beer.

In December certain increases were made in liquor duties, largely to compensate for loss of revenue due to the repeal of the Meals and Intoxicating Liquor Tax (a sumptuary tax introduced in the circumstances prevailing immediately after the war and charged at 10% on meals and liquor consumed in restaurants). The duty on locally-brewed beer was raised from $1 to $1.30 a gallon, but no increase was made in the case of imported beer. Duty on whisky and gin of Empire origin was raised from $44 to $53 a gallon, and on non-Empire brandy from $55 to $61 a gallon. On Chinese wine and liquor, the increase was $1 a gallon, making it $6 or $7 depending on origin.

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The scale of duties on imported tobacco ranges from $3 per lb. on Chinese prepared tobacco, to $7 per lb. on cigars of non-Empire origin. Preferential rates are granted to tobacco of Empire origin and manufacture.

Duty on light oils is 80 cents per gallon. For heavy oils the rates are $104 per ton for heavy diesel oil for road vehicles, $26 per ton for other diesel oil, $24 per ton for furnace oil, and 10 cents per gallon for other kinds of heavy oils.

Duty is payable on toilet preparations and proprietary medicines at the rate of 25% of the f.o.b. price ex-shipping port for imported goods, and 25% of the selling price ex-factory for locally-produced goods. The duty on table waters is 48 cents per Imperial gallon.

No dues are levied on exports. Drawback is paid on duty-paid commodities manufactured locally, if exported from the Colony. The number of general bonded and licensed warehouses is adequate.