ENG-1980 — Page 68

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FINANCIAL SYSTEM AND ECONOMY

During 1980-1, revenue from sales of land in the urban areas and in the New Terri- tories was expected to reach $4,418 million and $750 million, respectively, compared with actual revenue of $1,909 million and $391 million in 1979-80. There continued to be a high demand for the temporary occupation of Crown land. A number of sites were let by open competitive tender for various purposes.

Internal Revenue

Hong Kong's Internal Revenue comprises all taxes, duties and fees levied under: the Betting Duty Ordinance, Business Registration Ordinance, Entertainments Tax Ordinance, Estate Duty Ordinance, Hotel Accommodation Tax Ordinance, Inland Revenue Ordinance, and the Stamp Ordinance all of which are administered by the Commissioner of Inland Revenue, who holds the additional appointments of Collector of Stamp Revenue and Commissioner of Estate Duty.

In the financial year ending on March 31, 1981, it is anticipated that the yield from internal revenue will amount to $8,195.4 million, which compares with actual collections of $7,631.3 million for 1979-80.

Betting Duty

Under the Betting Duty Ordinance, a duty is imposed on bets on authorised totalisators or pari-mutuels, and on proceeds of Mark Six lotteries. The rate of duty is either seven and a half per cent or 11 per cent (depending on the type of bet made), and 25 per cent on the proceeds of lotteries. The anticipated yield from 61 race meetings and 102 lotteries in 1980-1-is $720 million.

Business Registration

With the exception of businesses carried on by charitable institutions and certain others, all people operating businesses in the territory are required to register and pay an annual fee of $175. Limited liability companies are under a similar obligation whether or not they carry on a business. Exemption from payment of the fee is granted when an unincorporated business is very small. The total yield from these fees, service fees for copies of documents and other fees in the 1980-1 fiscal year is estimated to amount to $51.5 million.

Entertainments Tax

An entertainments tax is imposed on the price of admission to cinemas and race meetings at rates varying with the amounts charged for admission. This averages out at approximately eight per cent in the case of cinemas and 28 per cent in the case of race meetings. For the 1980-1 financial year the estimated yield is $39 million.

Estate Duty

This duty is imposed on that part of a deceased's estate which is situated in Hong Kong. The rates of duty charged range from a minimum of 10 per cent on estates valued between $600,000 and $650,000 to a maximum of 18 per cent on estates valued in excess of $3 million, Estates under $600,000 are exempt. Collections in the year ending March 31, 1981, are expected to amount to $165 million.

Hotel Accommodation Tax

This tax is levied on hotel and guest house accommodation at the rate of four per cent of