ENG-1971 — Page 75

FINANCIAL STRUCTURE

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welfare services. The fund started with a transfer from general revenue of $7.4 million and an additional $27.8 million was credited during the period June 30, 1965, to March 31, 1971 by which date grants and loans amounting to $25.6 million had been approved. A further sum of $1.8 million, being unclaimed prize money as at March 31, 1971, is held in deposit. Details of the United Kingdom Government schemes and grants are shown in Appendix 16.

The audit of all public accounts and certain special funds is carried out by the Director of Audit, whose annual report on the accounts of the Hong Kong Government is presented to the legis- lature and transmitted to the Secretary of State.

DUTIES

There is no general tariff, but five groups of commodities- alcoholic liquors, tobacco, hydrocarbon oils, table-waters and methyl alcohol-are subject to duty, whether they are manufactured in Hong Kong or imported. In certain cases, preferential rates are charged on local manufactures and imports from other Common- wealth countries.

On liquors, the rates range from $1.60 per gallon on Hong Kong brewed beer to $73 a gallon on non-Commonwealth liquors and spirits. On tobacco, they range from $2.50 a pound on Chinese prepared tobacco to $11.25 a pound on non-Commonwealth cigars; and on hydrocarbon oils, from two cents a pound on liquefied petroleum gas to $1.80 a gallon on motor spirits. The rates for table-waters and methyl alcohol are 48 cents and $7.50 a gallon respectively.

All firms engaged in the import, export, manufacture or sale of dutiable commodities must be licensed.

RATES

Rates are levied on the basis of the annual letting value of land or a building held or occupied as a distinct or separate tenancy. The valuation list covers the rating areas of Hong Kong Island, Kowloon, New Kowloon and part of the New Territories. In the first three areas, rates are charged, with a few exceptions, at 17 per cent per annum of rateable value. In those parts of the New Ter- ritories which are statutorily subject to rates, the charge is 11 per cent. The valuation list is prepared by the Commissioner of Rating and Valuation and is frequently revised to bring it up to date. The estimated revenue from rates for 1971-2 is $352 million.

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