ENG-2009 — Page 111

The Economy | 63

A duty is imposed on the gross profits on horse racing and football betting administered by the Hong Kong Jockey Club, and proceeds of Mark Six lotteries. These are the only legal forms of betting in Hong Kong. The duty on horse racing is charged on a sliding scale, starting from the rate of 72.5 per cent on the first $11 billion of the gross profits. The rate progressed to 73 per cent, 73.5 per cent, 74 per cent and 74.5 per cent for each segment of $1 billion of gross profits thereafter, up to 75 per cent on the remainder of gross profits exceeding $15 billion. The duty on football betting is charged at a rate of 50 per cent of gross profits. The yield from betting duty in 2008-09 totalled some $12.6 billion, about 4 per cent of total

revenue.

From July 1, 2008, the tax rate for hotel accommodation tax was revised to O per cent.

Under the Dutiable Commodities Ordinance, excise duties are levied on only four types of commodities to be consumed locally-hydrocarbon oil, liquor, methyl alcohol and tobacco, irrespective of whether they are manufactured locally or imported. The Customs and Excise Department is responsible for collecting these duties. In 2008-09, the department collected duties of $6.05 billion (about 2 per cent of total revenue).

Duty on tobacco was increased by 50 per cent with effect from February 25,

2009.

The Rating and Valuation Department is responsible for the billing and collection of rates, which are levied on landed properties at a specified percentage of their rateable values. The rates percentage charge in 2009-10 was 5 per cent.

The rateable value of a property is an estimate of its annual open market rent at a designated date. Rateable values are reviewed each year to reflect better prevailing market rents. The current Valuation List took effect on April 1, 2009, with rateable values reflecting the rental values on October 1, 2008.

The Valuation List contained about 2.3 million assessments on March 31, 2009. The revenue from rates in 2008-09 was $7.2 billion, accounting for about 2 per cent of total revenue.

To alleviate people's hardship caused by the financial turmoil, rates concession was given to all ratepayers to offset the rates payable for the four quarters from April 2009 to March 2010, subject to a ceiling of $1,500 per quarter for each rateable tenement. As a result, about 86 per cent of ratepayers were not required to pay any rates, while the remaining 14 per cent of ratepayers had their rates bills reduced by the full concession amount of $1,500, costing the Government about $8.4 billion.

The Rating and Valuation Department is also responsible for the billing and collection of Government rent for properties held under land leases granted on or after May 27, 1985, or on the extension of non-renewable land leases. Government rent is levied at 3 per cent of the rateable value of the property and is adjusted in step with any subsequent changes in the rateable value. There were about 1.8