ENG-1961 — Page 80

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PUBLIC FINANCES

of the Colony. The debt at 31st March 1961 was equivalent to approximately $31 per head of population. Indebtedness rose by $3.7 million during the year because of drawings from the United Kingdom's interest-free loan of £3 million for the development of Kai Tak Airport; this loan is repayable in fifteen annual instal- ments, the first repayment being made on 1st October 1961. The Rehabilitation 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 $17 million on 31st March 1961.

Details of Public Debt, Colonial Development and Welfare schemes and grants are also given in Appendix II.

IMPORT AND EXCISE DUTIES

There is no general tariff, and most goods are free of any duty levied for purposes of protection or revenue. 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 Dutiable Commodities Ordinance. These are liquor, tobacco, hydrocarbon oils, table waters and methyl alcohol, the importation and sale of which may only be undertaken by concerns licensed under the Ordinance.

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On the 1st March 1961, several amendments were made to the duty rates for hydrocarbon oils in order to increase the revenue and to ensure uniformity of assessment on a gallonage basis. The duty on motor spirit was raised from $1.25 to $1.50 per gallon and that on diesel oil for public omnibuses from $104 a ton to 50 cents per gallon, representing an increase of approximately 10 cents per gallon. The duty on diesel oil for other road vehicles was amended from $104 a ton to $1 per gallon, an increase of approximately 60 cents per gallon. Duties on other diesel oils and furnace oils were amended from $26 and $24 per ton respectively to 10 cents per gallon, an increase of less than 1 cent per gallon. Duty on other heavy oils not elsewhere specified remained at 10 cents per gallon. The remaining amendment was the introduction of a rate for other light oils' of 10 cents per gallon covering all light hydrocarbon oils with the exception of motor spirit, so that marine and industrial users would not be penalized.