Those present at the meeting were: His Excellency the Governor (Sir G. A. S. Northcote, K.C.M.G.).
The Acting Officer Commanding e troops (Brigadier A. B. Thom- on).
The Colonial Secretary (Hon. Mr. N. L. Smith, C.M.G.).
The Attorney General (Hon. C. G. Alabaster O.B.E., K.C.).
Mr.
The Secretary for Chinese Affairs (Hon. Mr. R. A. C. North).
The Financial Secretary (Hon. Mr. S. Caine).
Hon. Commander G. F. Hole, R.N. (Retired), (Harbour Master).
Hon. Dr. P. S. Selwyn-Clarke, M.C., (Director of Medical Services). Hon. Mr. T. H. King (Commis- sioner of Police).
Hon. Mr. A. B. Purves (Director of Public Works).
Hon. Sir Henry Pollock, K.T., K.C.,
LL.D.
Hon. Mr. S. H. Dodwell.
Hon. Mr. Chau Tsun-nin, C.B.E. Hon. Mr. Lo Man-kam. Hon. Mr. Leo d'Almada e’Castro Jr. Hon. Mr. T. E. Pearce. Hon. Mr. A. L. Shields. Hon. Mr. Li Tse-fong.
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against Income TaxAURIT
266
charter money which for a big ship amounts to hundreds of dollars. In London charter parties require a 6d stamp for each signed copy.
The Chinese Chamber of Com- merce hold similar views which have been expressed by my Unofficial col- "Salaries here are admittedly high- leagues and enquiries made from er than at Home--they have to be- merchants, Bankers and people in but house rent is not deductable from It would many walks of life, make it clear income for tax purposes. that public opinion is almost entirely probably be surprising to find how
families many
with children to
make that educate and provision to
for Indications are not the Unofficial members of this Coun- retirement must economise in every cil are solidly against Income Tax, way to get along. The imposition of but I believe they will be as solidly an Income Tax would mean in many an adjustment of salaries inour of raising a War contri-cases
falling on the employer, who would bution by other means.
"The Committee of the Chamber of also pay tax on his business profits Commerce proposed other taxes to and still have to compete with mer- cover chants in other ports for the trade of produce about $5,200,000 to local defence and a contribution to China.
"One objection, I believe, to the the Home Government. These taxes
the may not be free from criticism, but alternative taxes proposed by
of Commerce and the they deserve careful examination as Chamber they have the great advantage of Chinese Community is that they do costing practically nothing to collect. not get at unlimited partnerships and Government may suggest other alter- salaried employees including Govern- natives which will satisfy the com-ment Servants, but if this cannot be munity and for these reasons, Sir, I accomplished I believe a request for would urge that the terms of refer- voluntary contributions would meet
response from! ence of the Taxation Committee now with an immediate sitting be broadened to include the many who would contribute accord- ing to their means. I firmly believe examination of alternatives.
there is no unwillingness to pay to- wards the cost of the War.
Important Objection
No Compromise Speech "The very able speech of the Hon. Mr. C. B. Burgess (Deputy Clerk
Financial Secretary impressed me as of Councils).
An important objection to Income H,E. The Governor.--When I ad- one of no compromise. Nothing but journed Council
all arguments Tax is that Home Government will a week ago, the Income Tax will do,
the have to refund such a large propor- shreds, torn to Hon. Mr. Shields,
been against it are who had speaking, made a request that he be business community, bankers, inves-tion of the total collection that the allowed to continue his speech to- tors, manufacturers, etc. should swal-net contribution to the United King- day. I was disposed to consider that low the distasteful draught and oe-dom may be greatly reduced, and to request and as the standing orders lieve it to be less harmful than any get that everyone will suffer a big
they
disturbance in paying and reclaiming might cover it I therefore call upon Mr. other nostrum which
and the net result may not be worth prefer to try. Shields to continue his speech.
it. Hon. Mr. Shields:
"We British are credited with being Hon. Mr. A. L. Shields: experts in compromise and the middle Your Excellency.-I am glad to course, but there is no confirmation of have the opportunity, owing to the this in the Hon. Financial Secretary's adjournment of the debate on the speech. He set out to confound the War Budget, of considering the opposition to his pet tax and may have done so entirely to his own speech made by the Hon. Financial Secretary in support of the Income satisfaction but the people who must Tax measure proposed by Govern- pay the fiddler, apparently still dis- ment, in which he dealt with the storm of disapproval from all sec- tions of the community as voiced by
of Council
like the tune.
The Hon. Mr. Caine dealt with the vexed question of evasion.
"If Income Tax should prove to be 50% ineffective would he propose to discontinue it after expensive department had been set up to collect
it?
an
"So many objections have been made to Income Tax that I need not "In comparing taxation in Hong-say more than that the Hon. Financial kong with other places one has only Secretary seems to be ploughing a to examine the high cost of living very lonely furrow. A perusal of all here to find that one of the contributhat has been said in this debate tory factors is the high price of land. leaves one with the same impression The Financial Secretary ably Government is the ground landlord as the proud Mother whose son had handled the case for Government but and the high price it obtains for land joined the Army. She turned out to has to be paid for ultimately by the see his Regiment on the march and tenants. Land sales have been an was surprised to find that they were
the Unifficial members who preceded him.
dismissed in cavalier fashion the alternatives for providing a contribu-
was higher than at present. I make this assertion, Sir, as I "Rents of private dwellings are imagine it prompted your statement higher than in England which is that Government did not intend to partly due to the cost of preparing use the Official majority to put sites, the charges for sewerage and through a measure which the people water connections, permits for access believed to be detrimental to the over Crown Land, etc. welfare of the Colony in order to provide a gift from these people to the Home Government.
was
tion to the Imperial Exchequer which important item of Revenue. Rents all out of step with her Peter." had been put forward by representa- which are based on a return on the (applause). tives of many interests. The good- investment in land and buildings are
AN EXPLANATION will and co-operation of the people also the basis of assessment. It was The Financial Secretary. I rise in a matter of this kind are important, said that when land in the business not to make another speech but to if not essential to the successful centre was $60 and over per square ask Your Excellency's permission to carrying out of your Excellency's foot it was dearer than land in make a personal explanation with laudable desire that Hongkong should Lombard Street in the City of Lon- regard to the speech I made at the do its bit towards financing the war. don. I admit the value of the dollar last meeting of the Council.
The Official Majority
There
in that a sentence speech which could conceivably have been interpreted as imputing impro- per motives to members of this Council. I said that if suggestions were made that Income Tax should not be introduced in this Colony "A man at Home paying £40 per because it would not be quite 100 annum for a house in the suburbs per cent effective, I could not but with taxes at three times the rate in suspect that they covered some other mind the motives. It was not in my pays equivalent of $960 per annum or that any Member of this Council had num or $80 per month. What can he opposed Income Tax principally on get in Hongkong for that rent in- that ground. In fact, I had in my As you are aware, the General clusive of the present 17% rate? mind when saying those particular Committee of the Chamber of Com-
#Previous Ingenuity
words, criticisms to that effect in merce held a meeting and after dis-
the Press. I had stated at the be- "The long list of Government cussion and consideration they de- charges for permits, stamp fees, etc., ginning of my speech that I pro- cided unanimously against Income must be considered. Many things posed to deal with Members' com- from permission to work a steamer ments as well as remarks made by the Press, and I wish to make it They recommended other alter on Sunday to permission to park a natives which had also been carefully car in Dúddell Street have to be ob- clear that it was very far from my considered, and gave their opinion tained by permit at a price. Great thoughts to suggest that any Member that the proposal to raise three mil- ingenuity on the part of successive of this Council had any other motive lion dollars for local defence and Colonial Treasurer has been display- but the best interests of this Colony.
(Applause). seven million dollars as a grant for ed in finding these methods of in- war purposes was too high, as it creasing Revenue. would be detrimental to the welfare for instance, are estimated of the Colony if such a large sum duce $40,000 in the 1940-41 budget. was taken out of the Colony, giving A charter party signed in Hongkong is taxed at 15 cents per $100 of the
I have not been able to get an Hongkong (say 50%), official copy of your remarks, Sir, But I believe I have correctly inter- preted them in my own words.
Tax.
no return.
*
Official signatures, half of the Unofficial Members of this Hon. Sir Henry Pollock.-On be- to pro-
Council, I should like to thank the statement he has just made.
Financial Secretary for
Hon.
the