ENG-1961 — Page 84

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PUBLIC FINANCES

It is estimated that the revenue from Earnings and Profits tax during the financial year 1961-2 will be $174,500,000.

Estate Duty. This levy was first introduced in 1931 and generally follows the lines of the United Kingdom procedure. In 1959 the Estate Duty Ordinance was re-modelled to conform to modern practice. Duty is assessed only on that part of an estate which is in Hong Kong no charge being made in respect of estates outside the Colony. The rates of duty range from 2% on estates valued between $50,000 and $100,000 to 40% on estates over $15,000,000. Yield for the year ending on 30th March 1962 is estimated at $12 million.

Stamp Duty. This duty is also modelled on United Kingdom practice. Fixed duties are charged on various documents at varying rates of which the lowest is 15 cents on Bills of Lading and Receipts and the highest $20 on deeds. Ad valorem duty on various other documents ranges from 15 cents on $500 to $2 on $100. A special duty at the rate of 3% is payable on the first conveyance of any parcel of land after September 1948. The estimated yield from Stamp Duty during the current fiscal year is $40,500,000.

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Entertainments, Dance Halls & Bets and Sweeps Taxes. Sub- stantial revenue accrues from these taxes and it is estimated they will yield $34,000,000 during the current year. Entertainments Tax is charged on the price of admission to places of entertain- ment. The rate or charge varies with the amount charged for admission and averages approximately 22%. Certain types of entertainment given for philanthropic, charitable or educational purposes attract tax at a lower rate or may be exempt. Public Dance Halls Tax is a levy of 10% on all Dance Halls charges. Bets and Sweeps Tax imposes 71% (5% to 31st March 1961) on totalizator receipts and 25% on Cash Sweepstake receipts.

Business Registration. Registration of businesses on payment of a fee was first introduced in 1952 by the Business Regulation Ordinance, which was replaced by the Business Registration Ordinance in 1959. Every business carried on in the Colony is required to register. There are exemptions from fees for small businesses and certain non-commercial undertakings, all others pay a fee which is at present $25 per annum. The yield from this source is estimated at $1,600,000.