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I. Suggestions considered and rejected.
(a) Customs Duties, which at present yield
about $7,000,000, or 20 per cent of total annual revenue,
tobacco, lifquor
are confined to a very few luxury or semi luxury articles
quor and petrol, with tobacco as the largest
item. But a general tariff has always been regarded as
impractical in Hong Kong in view of its peculiar
economic and commercial situation, and the Committee
adhere to this view. They do not recommend any increase
in tobacco duties, because these bear mainly on the
poorer classes of the population; and although an
experiment has recently been made with an ad valorem
duty on cigarettes, they do not consider that any
practical benefit would be derived from a further
application of this principle to the liquor and tobacco
duties generally. Nor do they consider that any attempt
should be made to include other semi luxury articles,
e.g. radio sets. A salt tax is also ruled out owing to
its incidence on the poorer classes and the cost and
difficulty of its collection.
(b) The Committee do not think it desirable
that there should be any increase in the taxation of
motor vehicles, since they consider that any appropriate
increase in this sphere should be derived from motor
spirit rather than the vehicle. duties.
(c) The present rate of death duties is
considered to be high enough for Hong Kong; and moreover
if it is thought necessary to increase such duties, the
further revenue should be obtained by the introduction
of legacy and succession rates rather than by any increase
in the death duties themselves.
(a)