ENG-1958 — Page 77

PUBLIC FINANCE AND TAXATION

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loan of £3 million for the development of Kai Tak Airport; this loan will be repayable in twenty annual instalments. The Reha- bilitation Loan, which was raised in 1947-8 to cover part of the cost of post-war reconstruction, is repayable in 1973-8; there is provision for a sinking fund which stood at $14 million on 31st March 1958.

Details of Colonial Development and Welfare grants and loans are given in Appendix I.

IMPORT AND EXCISE DUTIES

There is no general tariff, and for most goods Hong Kong is a free port so far as duties levied upon goods for protection or revenue purposes are concerned. There are, however, six groups of commodities, either imported into or manufactured in the Colony for local consumption, upon which duties are levied under the authority of the Dutiable Commodities Ordinance. These are liquor, tobacco, hydro-carbon oils, toilet preparations and pro- prietary medicines (grouped together), table waters and methyl alcohol.

A preferential rate of duty for liquor of Empire origin is levied at between 80% and 87% of the rate for non-Empire liquor. Locally-produced beer is allowed a further preferential margin over Empire beer. Rates of duty on different types of liquor range from $1.30 per Imperial gallon on locally-brewed beer to $61 per Imperial gallon for liqueurs and spirits not of Empire origin. On Chinese wine and liquor, the rate, depending on origin, is $6 or $7 per gallon plus 24 or 28 cents per gallon for every 1% by which the alcoholic strength by weight exceeds 25%.

The scale of duties on imported tobacco ranges between $3 per lb. on Chinese prepared tobacco and $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 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