107
Reac
RECOMMENDATIONS
5. Under para (ii)(a) of the terms of reference
(i)
A tax on the recent increment in the value of property in the Colony. to be assessed as 10% of the excess in all cases where property is sold at a higher price than that of the last recorded sale in the Land Office Registers, due allowance being made for improvements. Sales expressed in Japanese occupa- tion currency are to be ignored. This was the subject af an interim recommend- ation to Government which was accepted and the the necessary legislation enacted, with certain modifications, in Ordinance No. 22 of 1946.
It is difficult to make any reliable estimate of the proceeds of such a tax, but we put the revenue in 1947/48 at $3,000,000. A tax of this nature, dependent on increasing property values, is not a reliable measure for permanent inclusion in a system of taxation.
(ii) A tax of 10% on all meals served in hotels and restaurants, costing over 85 per head, and on all intoxicating liquors sold in hotels, restaurants and bars. Detailed proposals were submitted to Government as an interim recommendation and the necessary legislation has been enacted as Ordinance No.32 of 1946. They include provisions for the protection of "bona fide" residents in hotels and of those who are compelled, by the present housing conditions, to take their meals regularly in hotels and restaurants.
At the present rate of expenditure in restaurants in the Colony, it is estimated that a full year's yield will be $15,000,000.
(iii) A tax, similar to the foregoing, of 10% on all bills, of whatever amount,and. on all dance tickets sold in premises licenced as Dance Halls. estimate a full year's revenue at $500,000.
We
(iv) An annual licence fee of $100 on all businesses of any nature what- soever, whether incorporated or unincorporated, partnership or sole trader, cou- pled with the registration of the trade name (but not of the names of the proprietors), address and the nature of the business or trade. The fee payable would be assessed on the trading unit (company, firm, sole trader, &c.) and not on the individual proprietors. We recommend, further, that any fee paid under this recommendation should be allowed in full as a deduction from any tax which may become payable by the licencee under any ordinance imposing at tax upon income er profits.
We estimate a full year's yield at $3,000,000.
6. Under para. (ii)(b) of the terms of reference
(i) The committee considered proposals for doubling the duties on liquor, excluding beer; for increasing the duties on beer by 25%; and for increasing the duties on tobacco by 50%. We supported the proposals and, in the light of infomation given us as to the margin of profit on existing rates, we suggested that Government should approach the trades concerned and secure their agreement to the maintenance of the existing selling prices. Failing such agreement we recommended the imposition of a price control fixing prices at not more than those ruling on November 27th 1946. The increases came into operation on 28th November, 1946, and are estimated to produce'additional Revenue to the extent of $7,000,000 in a full year.
(ii)
The Committee also considered proposals to increase the various port dues charged by the Harbour Department, with the exception of the Steamship Sur- vey Fees, by a further 25%, making a 50% surcharge in all. We agreed with the proposals, subject to the approval of the Port Executive Committee, which was forthcoming and the new rates are now in operation. The estimated increase in revenue is $150,000 in a full year.
(iii) The Committee recommend that the tax on Sweepstakes be increased from 15% to 25%.
We estimate that while the present popularity of Sweepstakes continues this should result in an increase in revenue amounting to $500,000 in a full
year.
2.
(iv)