ENG-1962 — Page 84

PUBLIC FINANCES

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equivalent to approximately $27 a head of population. Indebted- ness decreased by $3.8 million during the year due mainly to the repayment of $3.2 million of the United Kingdom's interest-free loan of £3 million for the development of Kai Tak Airport. This loan is repayable in 15 annual instalments; the first repayment was made on 1st October 1961. The Rehabilitation Loan, which was raised in 1947-8 to cover part of the cost of post-war reconstruc- tion, is repayable in 1973-8; there is provision for a sinking fund which stood at $18 million on 31st March 1962. 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, with the exception of five groups of commodities, imported goods are free of any duty levied for purposes of protection or revenue. The five groups of commodities, either imported into or manufactured in the Colony for local con- sumption, upon which duties are levied under the Dutiable Com- modities Ordinance are alcoholic liquors, tobacco, hydrocarbon oils, table waters and methyl alcohol. Firms wishing to import or sell these commodities must be licensed.

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A preferential rate of duty for liquor of Commonwealth origin is at present levied at between 66 per cent and 89 per cent of the rate for non-Commonwealth liquor. Locally-produced beer is allowed a further preferential margin over Commonwealth beer. Rates of duty on certain types of liquor were amended on 28th February 1962, with the result that duty on all types of liquor ranges from $1.60 a gallon on locally brewed beer to $73 a gallon for liqueurs and spirits of non-Commonwealth origin. The rate on Chinese-type wine and liquor is $6.50 a gallon (Common- wealth origin) or $7.50 a gallon (non-Commonwealth origin) plus 26 or 30 cents a gallon for every one per cent by which the alcoholic strength by weight exceeds 25 per cent.

On 31st March 1962, the duty rate on Chinese prepared tobacco was reduced from $4.90 a pound to $2.50 a pound. As a result, the scale of duties on imported tobacco now ranges from $2.50 a pound for Chinese prepared tobacco to $9 a pound on non-Commonwealth cigars. Preferential rates are granted for