HONG KONG LEGISLATIVE COUNCIL.
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gradually. Deficits can only be met by increasing revenue and by cutting down expenditure. The latter possibility will be kept under constant review but the sums that matter are unfortunately all being expended on necessary rehabilitation. It seems clear therefore that we must have increased revenue and that I fear means increased taxation.
I have already indicated that the desirability of replacing th taxes now levied under the War Revenue Ordinance by a normal form of Income Tax is under consideration and a review of licence fees will also be undertaken. There may too be other directions in which revenue can be increased. I think it will be generally agreed that our aim should be to reduce our dependence on His Majesty's Government to a minimum at the earliest possible date and with this end in view I feel sure that the Government may count on the support of Honourable Members in any measures which may prove necessary to augment our revenue.
The COLONIAL SECRETARY seconded, and the Bill was read a First time.