574

35

34

21

HONG KONG LEGISLATIVE COUNCIL

011

were

28th

any good. It won't du 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 other Colonies well known to me.

HON. MR. POLLOCK --In reply to your Excellency, I wish to deny that the un- official members asked for this taxation.

THIS EXCELLENCY--Not for this tax- ation: I said it had been conveyed to me that unofficial members of both Councils of this Colony were anxious that som sort of increased taxation should be in- troduced.

can

in a sarcastic way, because I am among those who thoroughly respect them; they are a most useful body and guide us on many points. The Chamber of Commere · took a month to consider the letter, a reply being received on May 23rd and the Chamber approved the principle of

if this taxation

more revenu

to that We In addition required. circulated report

June amongst the unofficial members, SO in their that

it have had they 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- |

Hox, MR. POLLOCK -Then all ! falls, profting by the experience gained

is that

has say

what

been with regard to the liquor duties, of allow-

conveyed to you is entirely wrong. ing stock in the Colony to escape the tax.

that may add

was somewhat This does not impose any hardship at all

astonished,

think that

the on the merchant, because any increas

hon. member who represents the made will come down on the consumer.

Chamber of Commerce was also astonish- 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 and tobacco. We have made an extra- ordinary generous allowance to the petty trader and the luxurious private con- sumer. We are allowing these two classes 100lbs, free. The tax will not affect 100lbs. of tobacco. If they have 101lbs. they will have to pay a tax only on 1b. We lost a lot of money, and we were put to untold worry and trouble and expense

the liquor duties, by the Colony to ing stocks in the taxation. Wo want tu that. There is one matter more. As to the question of imposing taxation in this manner, hon. unofficial members, I am informed, agreed to this imposition of taxes after very careful consideration.

HON. MR. POLLOCK---No, Sir.

over

allow- esca po

and

You said,

introduced to add to the general revenue And I think, Sir, that of the Colony. we have the strongest possible grounds for our astonishment in view of what fell from your Excellency's own lips on March 1st last, when speaking on the- increase in the liquor duties. after going fully into a large number of figures, that about $100,000 was re- quired to establish equilibrim between revenue and expenditure, and that that avoid could be attained by the proposed in-

creases in the resolution then befor the Council. With regard to the sug gestion that the unofficial members had invited this taxation, as your Excellency perfectly well knows, what the unofficial members discussed was the question of raising some sort of contribution to- wards a special war purpose. It had nothing whatever to do with establish ing equilibrium between revenue and ex- penditure. I absolutely deny, as vehe- mently as I can, any suggestion that unofficial members have asked for, have 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 Excelleney to day, that we had asked for this taxation.

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 the 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

or

HONGKONG LEGISLATIVE COUNCIL

His EXCELLENCY- I did not that.

say

Hos. MR. POLLOCK--Your words con- veyed that impression, and I certainly took you to mean that.

HON. MR. HOLYOAK was speak when

about to

remarked--You

HIS EXCELLENCY 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.

on

ટી.

very

do

His EXCELLENCY--I would like first of all to answer the hon. member who re- presents the Justices of the Peace, balancing of revenue and expenditure to which reference has been made was

The reduced Budget. public works were this year cut down by about

I $1,000,000. not suppose you want that sort of thing to go on.

It was very obvious in March last that I would have to tax tobacco, but I was not going to tell everybody that I was going to do so. With regard to what the hon. member has said as to unofficial members suggesting the new taxation, I may say that they asked for some new taxation, and I did not say for what purpose it would be used.

HON. MR. POLLOCK --That is not cor- rect, Sir.

more revenue.

HIS EXCELLENCY- If you wish to carry on your public works you must have This is one of the ways in which I think it can most easily And the and advantageously be found. Chamber of Commerce agree with me.

HON. MR. HOLYOAK "If necessary," which cannot be proved.

His EXCELLENCY It can, great deal more, I can assure you,

and a

The amendment to postpone considera- tion of the Bill for a fortnight was then put to the meeting and defeated, Mr. Pollock and Mr. Holyoak voting for the

other amendment, and the

members against it.

then

THE The

ATTORNEY - GENERAL moved the second reading of the Bill. In doing 50 he said-

Reasons regret that the Objects and attached to the Bill are SO meagre, but it was not found possible in the time at my disposal to give a more de- The Bill is tailed resume of the Bill. founded upon the Hongkong Liquors Ordinance, and whole sections have been taken from that Ordinance as they stand. Certain

in provisions adopted the Straits Settlements Tobacco Duties Ordinance have been utilised. The searching of passengers' luggage here is 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 as the system under collected. which the liquor duties are 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 23 per cent. Your Excellency referred to the generous abatement of 100lbs. under section 6 of the Bill. Any tobacco in the possession of any person under this section up to 100lbs, will be duty free. It is not in- tended that any

tobacco which is

HIS EXCELLENCY-- If there is any misunderstanding then the fault is mine. I understood there was no objection to the increased taxation. I did not say for what purpose.

any

new

Hox. MR. HOLYOAK was given permission to say

few a

words. The hon. member said-Unofficial members distinctly understood that taxation would be in the form of contribution for some war

or other. purpose

That was their suggestion when the matter was discuss- 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.

411

11

average.

6X-

Share This Page