propositions we recommend that the present War Reyonus Ordinance should be completely recast incorporating such ame .arents and additions as may be found desirable. In recasting this legislation we are of opinion that Government should consider means to allow rehabilitation costs as a charge against profits during the next few years.
Technical advice will be necessary on this and on other changes which may be found desirable. We therefore favour the suggestion that Mir. E.W. Pudney should pay a short visit to London to seek expert advice on such matters as we recognise that the legislation designed to take the place of the Var Revenue Ordinance must be enacted at the earliest possible moment.
We recommend that the taxation year should renain as at present, i.0. ending on the 31st March and that taxes similar to those levied under the War Revenue Ordinance be reimposed with effect from the 1st April 1947 though the tax collected will of course be based on receipts during the year ending 31st March 1947. The possibility of changing the tax year to the calendar year was considered but as most Chinese businesses terminate their year of accounting at Chinese New Year the effect would be to reduce very considerably the amount of business profits tax collectable during the year 1947. As it is a matter of paramount importance that we should raise sufficient revenue to balance our recurrent expenditure during the coming financial year, the . Committee decided that the tax year should remain as it is at present.
REJECTED PROPOSALS.
8. We have considered in detail the imposition of a Poll Tax and a Sales Tax, but have rejected them on economic, social and administrative grounds. We have also had suggested to us taxes on telephones, additional taxes on foreign and Empire motor vehicles, import duties on a variety of articles mostly luxuries, increased entertainments tax and a number of other proposals, all of which we have discussed and rejected.
9.
Property increment tax,
Restaurant meals, etc. tax.
Dance halls tickets &c. tax
•
Business Licence Fee
Sweepstake Tax (Additional) Licences increases
·
Liquor & Tobacco Duties
•
Port Charges .
•
Income Tax
SUMMARY
Additional Revenue
1946-47
Full year
$1.500,000
$3,000,000
5.800,000 100,000
15,000,000
500,000
3,000,000
200,000
500,000
80,000 2,400,000
350,000
7,000,000
70,000
150,000
15,500,000
$9,350,000
$45,000,000
A note of warning must sounded with regard to these estimates of additional revenue. They are based on existing condulona in the Colony and on existing business and social activity and are thorofare susceptible to change if and when conditions alter.
2.0.
Conclusion
135