does, the organisation of gambling by the
state. I am therefore averse from sanctioning
the establishment of state lotteries except in very
special circumstances or where it is established
1.
that no alternative method of raising necessary
revenue exists.
60
It seems likely that in Hong Kong the
most effective way of substantially increasing
revenue is by raising the rate of Earnings and Profits Tax, While I appreciate the reasons
why such a measure is not feasible at present,
it has not been suggested that these reasons
constitute a permanent objection to such a
measure.
7. It was sugested in the course of discussions with the Financial Secretary
that one direction in which revenue may be
improved is by further increasing the yield
from assessed taxes, another possibility being
more stringent legislation regarding estate duty so as to reduce evasion, both legal and
illegal. on the latter and on other points
it might be of advantage if the Financial
Secretary could consult with the Board of Inland
(and the Board of Trade while he is
Revenue in this country and is hoped to
Lare being made
make-arrangements to this end before his return
to the Gelo (As you are aware, the Colony's Commissioner of Income Tax has already been in
consultation with the Board of Inland Revenue.)
185 I will endeavour to secure settlement
OV
90
during
7
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8 1
178