ENG-1973 — Page 70

FINANCIAL STRUCTURE

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cent on those in excess of $1 million. The yield for the financial year ending March 31, 1974 is estimated at $42 million.

Stamp Duty is modelled on the British system which imposes fixed duties on certain classes of documents and ad valorem duties on others. The year saw a doubling of the rate of duty on Share Contract Notes from 20 cents for every $100 to $4 for every $1,000, payable on both bought and sold notes. Among other ad valorem duties are those on conveyances of land ($2 for every $100 with relief for conveyances of low value properties), bills of exchange and exchange contract cancellation notes (25 cents for every $1,000), voluntary disposition inter vivos ($2 for every $100), lease premia ($2 for every $100). Several of the minor duties including those on agreements in hand, receipts, bills of lading, charter parties, and insurance policies were abolished as part of the 1973-4 budget measures. The estimated yield from this source for 1973-4 is $500 million.

Entertainment Tax is imposed on the price of admission to race meetings at a rate which varies with the amount charged and which averages approximately 22 per cent. The duty previously imposed on cinema admissions was abolished as part of the 1973-4 budget measures. The estimated yield from this source from 1973-4 is $3.9 million.

Betting Duty is imposed on bets made on an authorised totalisator or pari- mutuel and on contributions or subscriptions towards authorised cash sweeps. The duty is 74 per cent on bets and 25 per cent on cash sweep contributions and is assessed from the returns of the Royal Hong Kong Jockey Club which holds the monopoly for conducting such operations. The estimated yield for the financial year ending March 31, 1974 is $60 million.

Hotel Accommodation Tax is imposed on hotels and guest houses and is levied at the rate of two per cent on the accommodation charges. For the financial year 1973-4 this levy is estimated to yield $5.7 million.

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Every business operating in Hong Kong, except non-profit-making or charitable institutions, is required to register and pay an annual registration fee of $25. Exemp- tion from payment of the fee is granted where the business is small. The income from these fees for the fiscal year 1973-4 is expected to yield $5 million.

Currency

In the absence of a central bank, Hong Kong's currency notes are issued by three commercial banks, the Hongkong and Shanghai Banking Corporation the Chartered Bank and the Merchantile Bank. Coins of one dollar, 50 cents, 10 cents and five cents and notes of one cent denomination are issued by the government. The total currency in nominal circulation at December 31, 1973 was:

Bank note issue

Government $1 coin issue

Subsidiary coin

Government one cent note issue

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$3,448,308,000 $ 153,416,232 $ 110,042,341 642,166

$

GA