- 5.-
466
(b).
certificates, the amounts of which were apparently fixed
on the basis of rates in force in England when the
relevant ordinances were enacted and when the dollar
stood otherwise than now. These charges should be
revised in the light of the present position, unless
it should be thought better to enact that for Er such
purposes the dollar should be taken at two shillings.
There are large untapped sources of revenue. Stamp
duties on contracts between broker and client are pro-
-ductive, but it has been estimated that much more could
be done by applying the same tax to contracts and trans-
-actions between broker and broker.
7. But, apart from direct taxation, it is impossible to
make taxes fall on the population even approximately in
proportion to their incomes, for there is no direct ratio
between means and the consumption or dutiable articles
unless luxury articles are taxed to a much greater extent
than is at present the case in Hong Kong where they are
confined to liquor, tobacco and petrol. Roughly speaking,
taxes paid increase with income up to the point where the
latter is sufficiently large to enable its possessor to run
a car; therefore the proportion weakens, and it may be said
without fear of contradiction that taxes paid by a man with
a very large income are absurdly light in proportion.
8. Income tax, though much evasion is certain, even in
Great Britain the system is not watertight is by general
consent the fairest form of taxation; and it s application
to Hong kong is by no means so absurdly impracticable s
a casual consideration suggests. That the system is not
perfect from the start need not and should not be made
an argument against its adoption.
In several Government
Departments Chinese account books are examined as a