ENG-1956 — Page 87

PUBLIC FINANCE AND TAXATION

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(c) Child allowance ranging from $2,000 for the first

child to $200 for the ninth child.

The maximum charge, however, is limited to tax at the standard rate on the total assessable income without the deduction of any allowances.

(3) Interest Tax, charged at the standard rate on most interest payments. It is normally collected from the payer of the interest, who deducts it at source from the interest paid.

(4) Property Tax, charged at half the standard rate on the net rateable value of all land and buildings in the Colony (other than in the New Territories).

As an alternative to these separate taxes a resident may elect to be personally assessed on his total Hong Kong in- come. A single assessment is then made by allowing similar allowances and charging similar rates of tax as in the case of the Salaries Tax. A set-off is then allowed for any of the four separate taxes already paid.

Revenue derived from these taxes in the 1955-6 year of assessment was as follows:

Corporation Profits Tax

Business Profits Tax

Salaries Tax

Personal Tax

Interest Tax

Property Tax

$47,205,872.06

21,516,406.94

$68,722,279.00

9,899,117.42

1,528,685.92

2,936,405.62

14,566,062.60

$97,652,550.56

Estate Duty is levied on conventional lines at rates varying between 2% (in the case of estates valued between $5,000 and $10,000) and 52% (in the case of estates valued at over $30,000,000). The total revenue received from this duty dur- ing 1955/56 was $6,639,433.64.

Rates have been levied in the Colony since 1845 when an Ordinance was passed to raise an assessed rate on lands,