34
HONGKONG LEGISLATIVE COUNCIL
in a sarcastic way, because I am among those who thoroughly respect them; they are a mest useful budy and guide us on many points. The Chamber of Commerce took a month to consider the letter, a reply being received on May 23rd and the Chamber approved the principle of this taxation if more!
to addition requ ́red. circulated
la
2 report amongst the unofficial that they have
un
revenne
Wezu
We
any good. It won't do dealers any good or anybody else. Therefore, I ask hon. members to accept the provisions of this Bill, which have been very well thought out and of which the mercantile com- munity and the unofficial members have been given very ample notice, much greater notice than they would get in uther Colonies well known to me.
Hox. ME POLLOCK-In reply to your Excellency, I wish to deny that the un- official members asked for this taxation.
Has EXCELLENCY-Not for this tax- ation; I said it had been conveyed to me that unofficial members of both Councila of this Colony were anxious that some sort of increased taxation should be in- troduced.
can
that
all I been
HON. MR. POLLOCK-Then
has what say 19 conveyed to you is entirely wrong.
I add that
was somewhat may
and astonished,
I think that the
the hon. meinber who represents Chamber of Commerce was also astonish-
I
that June 28th members, had it in their hands for a fortnight. The Government took them into its confidence, and I know that that confidence was not misplaced. We showed the unofficial members and the Chamber of Commerce our hand
Now we come to the every card in it, Bill and in connection with it I may say that we studiously avoided the pit- falls, profiting by the experience gained with regard to the liquor duties, of allow- ing stock in the Colony to escape the tax. This does not impose any hardship at all on the merchant, because any increase made will come down on the consumer. The traders do not lose money by it; you and I pay the tax when we buy our cigarsed, to find that this measure was being introduced to add to the general revenue and tobaceu. We have made an extra- ordinary generous allowance to the petty of the Colony. And I think, Sir, that we have the strongest possible grounds trader and the luxurious private con-
for our astonishment in view of what fell sumer. We are allowing these two classes
from your Excellency's own lips on 100lbs. free. The tax will not affect
March 1st last, when speaking on the 100lbs. of tobacco. If they have 101lbs.
increase in the liquor duties. You said, they will have to pay a tax only on 1lb.
after going fully into a large number We lost a lot of money, and we were put
of figures, that about $100,000 was re to untold worry and trouble and expensг
allow-quired to establish equilibrim between the
duties. liquor
by
revenue and expenditure, and that that ing stocks in the Colony to stap conld be attained by the proposed in-
waot the taxation. We
to avoid
creases in the resolution then before As to that. There is one matter more.
the Council. With regard to the sug- the question of imposing taxation in this
gestion that the unofficial members bad manner, bon. unofficial members, I am
invited this taxation, as your Excellency informed. agreed to this imposition of
perfectly well knows, what the unofficial taxes after very careful consideration.
members discussed was the question of raising some sort of contribution to- Hox. MR. POLLOCK-No, Sir.
wards a special war purpose. It had nothing whatever to do with establish- ing equilibrium between revenue and ex- penditure. I absolutely deny, as vahe-
unofficial members have asked for, or bave even discussed, taxation for the pur- pose of balancing revenue and expendi- ture. I cannot understand how the unofficial members' suggestions could have been twisted into what has fallen from your Excellency to-day, that we had asked for this taxation.
over
HIS EXCELLENCY-Well, then, I have been misinformed. It is necessary to increase the revenue of the Colony. We have increased the liquor duties, and themently as I can, any suggestion that least item which we think we can tax now is your tobacco. The price of opium has already been put up. The matter is urgent because we want to lose no time. To suspend this legislation for a fort- night simply means that everybody will attempt to avoid taxation as far as they possibly can. That will not do anybody I
HONGKONG LEGISLATIVE COUNCIL
Bay
His EXCELLENCY-1 did not that.
HON. MR. POLLOCK-Your words con- reyed that impression, and I certainly took you to mean that.
HON. MR. HOLYOAK was about to speak when
IIIS EXCELLENCY remarked-You are not entitled to speak again,
HON. MR. HOLYOAK-I was about to make a statement with regard to what your Excellency has said in connection with suggestions by unofficial members. You distinctly implied that we had asked for this additional taxation.
Un a
HON. MR. POLLOCK-That is not cor- reet, Sir.
35
408
H18 EXCELLENCY-If you wish to carry on your public works you must have more revenue, This is one of the ways in which I think it сал most easily and advantageously be found. And the Chamber of Commerce agree with me.
HON. MR. HOLYOAK If necessary," which cannot be proved.
HIS EXCELLENCY-It can, and a great deal more, 1 can assure you.
The amendment to postpone considera- tion of the Bill for a fortnight was then put to the meeting and defeated, only the Hon. Mr. Pollock and the Hon. Mr. Holyoak voting for the amendment. The other unofficial members voted with the official majority.
arc 80
then
HIS EXCELLENCY—I would like first of all to answer the hon. member who re- presents the Justices of the Peace. The
THE ATTORNEY GENERAL moved balancing of revenue and expenditure
the second reading of the to which reference has been made was Bill. In doing 90 he said-I
very
The reduced
regret that the Objects and Reasons Budget. works public
this were
eut attached to the Bill year
meagre, down by about $1,000,000. I do but it was not found possible in the not suppose you want that sort of thing time at my disposal to give a more de- The Bill is It was very obvious in March tailed resume of the Bill. to go on. last that I would have to tax tobacco, but founded upon the Hongkong Liquors Ordinance, and whole sections have been I was not going to tell everybody that I was going to do 80. With regard to what taken from that Ordinance as they stand. Certain provisions adopted 10 the the hon. member has said as to unofficial
Settlements Tobacco Duties members suggesting the new taxation, I Straits
Ordinance have been utilised. The may say that they asked for some new taxat on, and I did not say for what searching of passengers' luggage here is purpose it would be used.
no new thing to the Colony, for it has existed here for, at least, the last seven years, if not longer. In no way can this be regarded as retrospective taxation. It is a misuse of language to call the imposition of duty on tobacco in the Colony retrospective taxation. There are two main points of interest in the Bill. In the first place the trade will want to know how the system is to be worked. The answer is that the system will be almost the same 24 the system under which the liquor duties are collected. In the second place the consumer wil want to know how the duties will affect the retail price of tobacco, cigar's. and cigarettes.
The answer to this is that the duties will increase the retail price by about 29 per cent. on an average. Your Excellency referred to a generous abatement of 100lbs. under section 6 of the Bill. Any tobacco in the possession of any person under this retion up to 100lbs. will be duty free. It is not in- tended that any tobacco which is "X-
HIS EXCELLENCY-If there is any misunderstanding then the fault is mine. I understood there was no objection to the increased taxation. 1 did not say for what purpose.
given
HON. MR. HOLYOAK was permission to SAY a few words. The hop. member said-Inofficial members distinctly understood that any new taxation would be in the form of contribution for some
wer purpose Dr other. That Was their suggestion when the matter was discuES- ed. Among the possibilities discussed in this connection was a tobacco tax, or an increase in the assessment but such extra taxation was not to be for the the pur- pose of balancing revenue and expendi-
ture.