The
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(B) Ordinary revenue to be increased by (1) proceeds of
additional taxation designed to check imports; proposal follows in
Separate telegram. Nett increased yield very difficult to estimate owing to the effect on consumption but expected to be more than
1,000,000 per annum (2) adoption of certain minor recommendations
of the Taxation Committee which are already in train and may yield
$100,000 per annum or more.
On receipt of your approval and accaplance of principles
preliminary considerations of the
by the Legislative Council
draft Income Tax Legislation rates of allowances, etc. would commence at once leaving final decision on details until the
arrival of expert from home if available.
I should like to announce general intention to
carry through these proposals at the meeting of the Legislative Council on the 12th October when it has already been arranged to present the 1940/41 budget and to give the members of the Council advance intimation in confidence as long as possible
before that meeting I should therefore be grateful for your decision in principle at earliest possible moment, details being if necessary reserved for further consideration.
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