22 1
SECRET
HONG KONG
CIVIL AFFAIRS POLICY DIRECTIVES
FINANCIAL POLICY
54132
Revised Draft
7/7/44
The general aim of financial policy will be to distribute
the burden of taxation, required for the urposes of the community,
In general, among the community according to its ability to pay. the pre-occupation financial system should be revived except as
specifically directed below.
2.
All revenue from the date of occupation should be collected in accordance with the legislation in force at the date of the enemy occupation. It is understood that the Japanese have established
these should not be maintained
a series of business monopolies; permanently. The Japanese-run lotteries should not be revived. Minor modifications in respect of licence fees made by the Japanese may be accepted at the discretion of the General Officer Commanding.
3. Import Duties. Hong Kong should remain a free port, and
import duties should be confined, as in the past, to alcoholic
liquors, motor spirit and tobacco.
4. Imperial reference. It may be assumed that some measure
Fre-war references should, of Imperial Preference will be preserved. therefore, be maintained, unless and until varied at the direction of His Majesty's Government.
5.
Opium Monopoly.
The Government opium monopoly is not to
be restored.
6. Inland Revenue.
Until consideration can be given to the
introduction of income tax, the Salary and Business Tax legislation should be revived as soon as possible as an interim measure.
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Expenditure. As soon as the situation permits Budgetary Control and estimates of revenue and expenditure should be re- established in accordance with colonial regulations.