5
which gives approximately the margin of
$500,000 mentioned by the 0.A.G. This
proposal can therefore be approved.
(2) The 0.A. G. asks the S. of S.'s
permission to announce in introducing the
Budget that, if the Budget cannot otherwise
be balanced, it may be necessary to impose
a levy on salaries. It is usual only to
impose a salary levy at the same time as
additional taxation is imposed. In Hong Kong,
even more than elsewhere, the time of a trade
depression is the worst time for imposing
fresh taxation, but nevertheless, in approving
in principle the making of such an announce-
ment, I think the S. of S. might say that
the 0.A.G. should first give consideration to
the question whether some additional
taxation, which would not intensify the
depression or inflict hardship in quarters
wast
already/adversely affected thereby, could not
be imposed at the same time as the levy, in
accordance with the principle of equality of
sacrifice, and foreshadowed at the same time
as the announcement is made about the levy.
Opportunity stund
حمد
te
laken to refer to the
Enculer despatch of 16th July 1932
(copy unnered)
megarding the general principles of framing
a
levy.
ME Costar
1|9/35.