ENG-1965 — Page 56

FINANCIAL STRUCTURE

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the Colony from the liabilities. The debt at 31st March 1965 was equivalent to approximately $22 per head of population. Indebted- ness decreased by $3.8 million during the year owing 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 Dollar Loan balance, which stood at $472,000 on 31st March 1965, was redeemed in July 1965. 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 $24 million on 31st March 1965. Details of Public Debt and Colonial Development and Welfare schemes and grants are shown in Appendices X and XI.

EXCISE DUTIES

There is no general tariff and only five groups of imported com- modities, namely alcoholic liquors, tobacco, hydrocarbon oils, table waters and methyl alcohol, are subject to import duty. Excise duties are levied on the same products when manufactured locally. All firms engaged in the import, export, manufacture, or sale of dutiable commodities must be licensed.

The rates of duty are, in general, low. 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 enjoys a further preferential margin over Commonwealth beer. Duty on all types of liquor ranges from $1.60 per gallon on locally brewed beer to $73 a gallon for liquors and spirits of non-Commonwealth origin.

The scale of duties on imported tobacco ranges from $2.50 a pound for Chinese prepared tobacco to $9.25 a pound on non- Commonwealth cigars. Preferential rates are granted for unmanu- factured tobacco of Commonwealth origin and to cigars, cigarettes and pipe tobacco of Commonwealth origin or manufacture.

The duties on motor spirits and other light or heavy oils are $1.50 and 10 cents a gallon respectively. The general rate of duty on diesel oils for road vehicles is $1 per gallon, although public omnibus operators and marine and industrial users pay much