113
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3
114
3.
The Committee refrained from making any
estimate of the revenue which was likely to be
produced under their Bill and any estimate other
than in respect of Property Tax is largely guess
work. But Mr. Caine before he left suggested a
round figure of $6,000,000 including $1,000,000
in respect of Salaries Tax and $3,000,000 in
respect of Frofits Tax from Corporations and
Businesses in addition to the calculable sum of
approximately $2,000,000 for Property Tax.
4.
The approval in principle of the
Report is being sought in the Legislative
Council meeting of 7th March and I am assured
that there will be no unofficial opposition
to that approval. This will leave the Council
free to depart from the detailed proposals of
the Committee here such action may appear
desirable, but I shall not employ the official
majority to make any radical modifications. I
realize that while the collection of Property
and Salaries Tax will present little
administrative difficulties, considerable
trouble will be experienced in differentiating
between profits made from transactions in the
Colony and other profits of local corporations and firms, and that the main difficulties will be presented by the tax on the profits of
businesses, the great majority of which are
2
Chinese. I am assured that the Chinese are prepared to
contribute their share of additional taxation to assist
in Great Britain's war effort and, while I feel that every
if opportunity should be given them to prove this,
experience of the working of the Ordinance shows such expectations to be unfounded, I shall have to consider the
material amendment of the Ordinance.
5.
My proposals as to the allotment of the proceeds
of this new taxation have already be en communicated to
fou in my confidential telegram No.96 of 2nd March, 1940,
and I will address you further on the details of those
proposals in due course. The Bill authorizing the new
taxation will be introduced as early as possible but, as
is stated in that telegram, I see no reason to defer
action on the lines indicated.
I have the honour to be,
Sir,
Your most obedient, humble servant,
J.C.d. Worthwh
Governor.