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Short title.
Levy on sterling salaries exceeding £240 per annum.
Ordinances
Nos. 15 of 1908 13 of 1928, 9 of 1929, and
2 of 1931.
Levy on
dollar
salaries exceeding $240 per
лDum.
321
A BILL
INTITULED
[No. 5-9.3.36.-1.]
An Ordinance to make provision for a levy on the salaries of
public officers in the Hong Kong Government Service.
Be it enacted by the Governor of Hong Kong, with the advice and consent of the Legislative Council thereof, as follows:-
1. This Ordinance may be cited as the Hong Kong Government Service (Levy on Salaries) Ordinance, 1936.
2.—(1) Subject to the provisions of section 6 and with effect on and from the 1st January, 1936, and in order to reduce expenditure, there shall be a temporary levy, imposed by way of deduction at source, on the salaries of all public officers in the Hong Kong Government Service which are expressed in terms of sterling and which exceed £240 per
annum.
(2) On all such salaries there shall be deducted 24% on the first £240, 5% on the next £360, 74% on the next £400, 10% on the next £400 and 12% on the remaining portion of the salary above £1,400 per annum : Provided always that the levy as distinct from the special rate of conversion mentioned in sub-section (4), shall not operate so as to reduce the annual salary of any such officer below £240.
(3) Widows' and Orphans' Pension Contributions of the said officers under the Widows' and Orphans' Pension Ordin- ance, 1908, and the Ordinances amending the same, shall be calculated on the full sterling salary and converted into dollars at the prevailing monthly Treasury rate.
(4) After deduction of the levy, if any, and of the Widows' and Orphans' Pension Contribution, if any, or of either, the remainder of the salaries of all public officers in the Hong Kong Government Service which are expressed in terms of sterling, whatever their amount, shall be converted at the rate of one shilling and sixpence to the dollar for the months of January, February and March, 1936, and for subsequent months at such rates as the Legislative Council shall by resolution from time to time direct.
3.-(1) Subject to the provisions of section 6 and with effect on and from the 1st January, 1936, and in order to reduce expenditure, there shall be a temporary levy, imposed by way of deduction at source, on the salaries of all public officers in the Hong Kong Government Service which are expressed in terms of dollars and which exceed $240 per
annum.
(2) On all such salaries there shall be deducted, in respect of the salaries payable in respect of the months of January to June, inclusive, 1936, 4% on the first $1,000, 8% on the next $1,500. 12% on the next $2,500 and 15% on the remaining portion of the salary above $5,000.
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(3) In respect of the month of July, 1936, and of sub- sequent months, the percentages in sub-section (2) of this section shall be reduced to 3%, 6%, 10% and 12% respectively.
(4) The levy authorised by this section shall not operate so as to reduce the annual salary of any officer below $240.
4. Every levy, whether in respect of a sterling salary or of a dollar salary, shall be applied to the net salary after the deduction of the contributions, if any, payable under the Widows' and Orphans' Pension Ordinance, 1908, and the Ordinances amending the same.
Levy to be applied to net salaries after deduc- Widows' and
tion of
Orphans' Pension Contribu-
tions.
Ordinances
Nos. 15 of 1908, 13 of
1928, 9 of
1929, and
2 of 1931.
This Ordin- ance to be
5. This Ordinance shall be deemed to have been in force as on and from the 1st January, 1936, and it shall continue in force for in force until the 31st December, 1936, and no longer, unless otherwise provided by Ordinance.
the year
1936 only unless
otherwise provided by Ordinance.
Power of legislature
6. It shall be lawful for the Legislative Council to exempt either wholly or partially from the operation of sections 2 and to grant
3 of this Ordinance, or from any part thereof, any officer or exemptions
by resolu- any class or description of officer. Any such resolution, if tion. so expressed, may be retrospective in operation.
rights of
7. Nothing in this Ordinance shall be deemed to recognise Saving of any rights whatsoever against the Crown or be deemed to the Crown. imply that the holding of any appointment or the payment of C. Colonial Regulations salary constitutes a contract between the Crown and any of 20 and 21, its servants or that any public office is held otherwise than and H.K. during His Majesty's pleasure.
Objects and Reasons.
1. In order to assist in decreasing the anticipated budget deficit for the year 1936 after the fall in the exchange value of the local dollar it has been considered necessary to impose a temporary levy on Government salaries by way of reduction of expenditure.
2. In accordance with the views expressed in the Secretary of State's Circular despatch of the 16th July, 1932, dealing with such levies in the Colonies generally, the reductions are clearly designated as temporary and accordingly take the form of a levy on salaries imposed by statute renewable from year to year, the value of emoluments for pension purposes is not affected, and the principle of a fairly graduated scale of reduction is adopted in preference to an arrangement providing for all-over cuts of so much per cent on salaries up to a certain limit, and of a higher percentage on salaries above that limit.
3. Clause 6 gives the legislature power to grant exemptions by resolution.
March, 1936.
C. G. ALABASTER,
Attorney General.
General
Orders 1 and 2.
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