ENG-1959 — Page 74

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HONG KONG ANNUAL REPORT

there is provision for a sinking fund which stood at $16 million on 31st March 1959. The 34% Dollar Loan 1934 was fully redeemed in July 1959.

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

IMPORT AND EXCISE DUTIES

There is no general tariff, and most goods are free from duties levied for protection or revenue purposes. There are, however, five 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, hydrocarbon oils, table waters and methyl alcohol.

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Certain changes were made to the list of dutiable goods and duty rates this year, and from the 25th February toilet preparations and proprietary medicines became duty-free, although duty con- tinues to be payable on any alcohol content in these goods. At the same time, adjustments were made in the rates of duty on tobacco other than tobacco of Commonwealth origin and manu- facture, and on certain wines. The effect of these changes was to increase the duty by approximately one cent per packet of non-Commonwealth cigarettes, to bring the duty payable on vermouth into line with port and sherry, while reducing by fifty per cent the duty payable on other still wines imported in casks.

A preferential rate of duty! for liquor of Commonwealth origin is levied at between 80% and 87% of the rate for non- Commonwealth liquor. Locally-produced beer is allowed a further preferential margin over Commonwealth 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 Commonwealth 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 from $3 per lb. on Chinese prepared tobacco to $7 per lb. on cigars of non-Commonwealth origin. Preferential rates.

Preferential rates are granted to