ENG-1979 — Page 70

FINANCE AND ECONOMY

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Rates are levied annually on the occupation of landed property at a percentage of the assessed rateable value. The rateable value is, briefly, the annual rent at which the property might reasonably be expected to be let. This percentage is determined by resolution of the Legislative Council and, since April 1, 1977, has been 11 per cent in the urban areas with lower percentages in the New Territories. In the urban areas, the rate is apportioned as 7 per cent to general revenue and four per cent to the Urban Council. No Urban Council rates are levied in the New Territories because the council does not operate there.

New valuation lists are prepared periodically, as directed by the Governor, enabling rateable values to be revised in line with current market rental levels. The last completed review, which came into force on April 1, 1977, included more than 540,000 assessments with a total rateable value of more than $11,000 million. The estimated rates revenue for 1979-80 is $1,274 million, of which about $392 million will go to the Urban Council.

Pre-war rent-controlled premises benefit from a scheme under which rate increases for the premises may not exceed 33.33 per cent in one year.

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Educational, charitable and welfare organisations may be provided with financial assist- ance from the government towards the payment of rates if the premises they occupy are run in accordance with an approved target or policy. No refund of rates is made in the case of vacant domestic premises. However, half the amount of rates paid for vacant non- domestic premises may be refunded.

Stamp duty is limited to duty on assignments of immovable property, leases, share contract notes, and transfers. The estimated yield for the year ended March 31, 1980, is $800 million.

Entertainments tax is imposed on the price of admission to race meetings and cinemas at rates varying with the amount charged for admission. This averages about 28 per cent in the case of race meetings and eight per cent in the case of cinemas. The estimated yield for 1979-80 is $30 million.

Betting duty is imposed on bets made on authorised totalisators or pari-mutuels and on the proceeds of the Mark Six Lottery. The rate of duty is charged at either 7 per cent or 11 per cent, depending on the type of bet placed, and at 25 per cent on the proceeds of lotteries. The estimated yield for the year ending March 31, 1980, is $630 million.

Hotel accommodation tax is imposed on hotel and guest house accommodation and is levied at the rate of four per cent on the accommodation charges paid by guests. For the 1979-80 financial year, the estimated yield is $29 million.

Business Registration Fee

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Business registration is compulsory for every company incorporated in Hong Kong, every overseas company with a place of business in Hong Kong, and every business operating in Hong Kong, except those carried out by charitable institutions. The annual registration fee is $175, but exemption from payment is granted when the business is small. The total income from these fees, service fees for copies of documents, and other fees for the 1979-80 fiscal year is expected to be $47 million.

Monetary System

Currency

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Currency notes are issued by two commercial banks - the Hongkong and Shanghai Banking Corporation and the Chartered Bank. The Mercantile Bank's authorised note-issuing powers have been taken over by the Hongkong and Shanghai Banking Corporation; its