Wt. 49614,485 3/46 50m. S. & S. Ltd.

54307/47

26

bft fa Ty

concurrence

0.

Mr. Emanuel

Mr. Mayle

20/1

Havin

andrast

Mr. Jodytiems

Mr.

Mr.....

20his

DRAFT.

Permt. U.S. of S.

Parly. U.S. of S.

Secretary of State.

TELEGRAM.

(1)

Ordinance.

THE GOVERNOR,

HONG KONG.

Your telegram No. 1651.

Revision of War Revenue

FURTHER ACTION.

To so under come dacis

de celle of

Chi sexpell

You will wish to know that

draft Income Tax Ordinance which Pudney

is taking back with him after consultati

with Board of Inland Revenue has my

general approval in principle.

Pudney

■ill fully explain ways in which drafts

Ordinance differs from 1941 Ordinance.

Principal advantage over 1941 Ordinance

is that it permits institution of a

standard rate and gives encouragement

to taxpayers to seek personal assessment

on basis of whole income.

2.

Question of rates of tax was

not discussed in detail with Pudney

except in general terms. I wish,

however, to emphasise the importance

I attach to putting the standard rate

at as high a level as you consider

practicable. In this connection

Ordinance as drafted by Pudney will

by Impositin

not permit the institution of a surtax

This is an

on higher incomes and Insider it additional regim for making the important, therefore, that standard r

øhould be as high as possible in

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