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No. 30,687
́) THURSDAY, MAY 25, 1939
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AUSTRALIA'S CHOICEST
BUTTER
INCOME TAX FOR
HONG KONG DISCUSSED
Taxation Committee's
Recommendations
Opinions opposing any increase in rates, except as a last resource, ex- pressing doubt as to the practicability and equity of a Corporation Profits Tax, and giving qualified approval of the introduction of an income tax, are contained in the Report of the Taxation Commit- tee laid on the table in Legislative Council this afternoon.
The Committee recommends as minor measures, if further taxation is considered necessary, substantial increases in the school fees of Eu- ropean schools,
An increase in the betting duty.
Higher royalties from the Telephone Company; royalties from the gas and electricity companies;
Conversion of the taxi companies into a royalty-paying public uti-
lity company on a monopoly basis;
Increases in the duties on liquor and motor spirit, up to an increase
of $1,000,000 annually.
The Committee finds that the advantages of income tax over all other forms are overwhelming
Bitten by his own dog, Mr. J. J. Grover, of No. 215 Fa Yuen Street,
JAPANESE STAY IN ARAMIS
FOR AN HOUR
Shanghai, To-day.
The Japanese naval party which boarded the French liner Aramis remained on board for an hour, according to foreign reports.
Despite the captain's pro- test the party made a detailed examination of the ship's
papers.
It is understood the French authorities will make a very strong protest against the in- cident, a full report on which is being sent to Paris.
The Aramis is arriving in Shanghai to-morrow afternoon on schedule. Reuter.
J
Mr. R. W. H. Maynard, of No. 5, Garden Terrace, reported to the
from the point of view of equity, and that, if it Kowloon Hospital yesterday. The was stolen
Mongkok, was treated at the last night that his car, No. 2173,
p.m.
from the Star Ferry
be considered that the tax is capable of success-dog has been removed to Mautau- Car Park between 7 p.m. and 11 ful administration in the Colony, it should be kok for observation. imposed as soon as additional revenue on a substantial scale becomes a necessity.
It is suggested that the yield might be of the order of $5,000,000 annually, on a basis of 5 per cent., allowing for reasonably generous personal, family and other allowances.
The Committee suggests 10| per cent. as the maximum rate of income tax and assumes that its introduction would be followed by remissions in other forms of taxa- tion, which would offer oppor- tunity of a further simplification (b) of the taxation system and ren- der possible the abolition of various minor irritating taxes, besides making unnecesary any of the "minor" increases recom- mended; as possible, above.
FIVE QUALIFICATIONS
4
growth is likely automati- cally to increase the revenue, while it is outside our pro- vince to consider how far it may be needed to finance new or improved services. The possibility of the suc- cessful working of the tax should first be the subject of a detailed investigation with the assistance of an expert, preferably familiar with the collection of the tax
in an Eastern country.
NEW DEPARTURE
The recommendations con (c) The imposition of the tax in-
cerning Income Tax are, how- ever, qualified in five ways: (a) We must not be taken as expressing the opinion that such substantial extra re- venue is actually necessary; in so far as more revenue is - needed owing to the growth of the : Colony, thats very
in
volves a new departure fiscal policy. We assume that it would not be passed through Council by the use of the official majority and that unofficial members of Council will expect to re- ceive, before agreeing to the
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