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HONG KONG LEGISLATIVE COUNCIL.
In addition to the suggestions put forward by the Chinese General Chamber of Commerce, another has been made directly to my Chinese colleagues and myself, namely, the imposition of a tax- estimated to yield about $400,000 annually--on meals taken in restaur- ants and eating houses; the tax would be levied on meals costing over 50 cents a head, so that the poor would not be affected. Such a tax already exists in Canton, and is said to yield a large revenue to the Government of Kwangtung.
The proposal to tax race sweepstakes has met with general approval, for it would entail no hardship on anybody, while it would yield a substantial revenue and would be easy to collect.
It has been suggested that a tax on luxuries would also present no difficulty in collection, as the shops could include the tax in the bill of cost.
It is recognised that nothing can be done with the ferry and bus services until the existing concessions have expired.
We have been reminded that a monopoly in pawnshops existed about thirty years ago in Hong Kong, and that such a monopoly still exists in the Straits Settlements, where the system has been working satisfactorily.
for such a step would encourage smuggling.
Very few are in favour of raising the price of prepared opium, X
The suggestion of levying a tax on electricity and gas has received much favour in that it is considered to be taxation that would be most evenly distributed and would cause the least incon- venience to all concerned. It is true that cheap electricity and gas are no less necessary than cheap rental, but effects so grievous as are expected to follow an increase in the Assessed Taxes would not follow a tax on electricity and gas, although in both cases cost of living would thereby be increased. Here it is a case of choosing the lesser of two evils.
We have been assured that the interests of the electric and gas companies would not suffer because of the tax, which it is suggested should be one cent per unit, at which rate the tax is expected to bring in half a million dollars at least.
These, then, are the views expressed by the advocates of the various alternative schemes. We have not had time to examine them with the care which the importance of the subject demands, but we commend them to the careful consideration of the Government.
My Chinese colleagues and I agree that any increase in the Assessed Taxes is inopportune as, apart from the general stagnation
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