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HONG KONG LEGISLATIVE COUNCIL
Adam Smith, the great economist, said that the ideal tax should be collectable at a convenient time without extravagant expense, armies of collectors, or sheaves of tax banks, which should keep the citizens distracted from their pursuits of earning a living. The tax should be levied with a minimum of interference with free enterprise and the normal ebb and flow of economic tides.
I am of the opinion, Sir, that the advocates of Income Tax, in their impatience to consolidate Government revenue, have overlooked the fact that the major wishes of the Chinese population, representing 95% of the Colony's total inhabitants whose business acumen and extensive financial investments are to a large extent responsible for its traditional prosperity, are being ignored. The Right Honourable the Secretary of State for the Colonies, Mr. Arthur Creech Jones, in his recent pronouncements to the people of colonial territories has urged closer co-operation between the native populations and their governments, and in view of such manifestations it is logical that the Chinese should oppose any governmental measures which may affect their well being and business enterprises. Needless to say, the Chinese in Hong Kong will not be found wanting when equitable and fair financial schemes to support Government are proposed.
I, and I am sure the bulk of the Chinese community here, fully realise that Hong Kong must find additional revenues to avoid a further drain upon the already overtaxed homeland.
But we are not the only Colony where this is true. Gibraltar is another example. It is faced today with an urgent housing programme the cost of which during the next two years is estimated at £1,750,000 or about $25,000,000. The Secretary of State has authorized the institution of a Government Lottery which is expected to provide interest and sinking fund for this outlay. The Governor of Gibraltar in referring to the question of the introduction of Income Tax, indicated that such a step must be seriously considered, but thought it undesirable that such a measure should be introduced until discussion was possible by the elected representatives of the people. Sir, what is not con- sidered expedient for Gibraltar can hardly be considered expedient for Hong Kong. What is not considered immoral for Gibraltar, Malta, Southern Rhodesia-all of which will now meet part of their administrative expenditure out of lotteries, can hardly be considered immoral for Hong Kong. We already have, in a modified form, a betting tax. There was formerly a similar impost in Great Britain. In his budget speech of only a few days ago the Chancellor of the Exchequer stated that the reimposition was an attractive pro- position, and that "though it would unite against it strong and varied resistance ranging from bookmakers to Bishops" he would advise the Committee to face even this powerful combination if it seemed likely that he could get substantial revenue from this new tax.
I am convinced that most members of this Council, and the public, both Chinese and non-Chinese, would welcome experimenting with this painless method of raising revenue, which would yield substantial funds for our social services even if the income tax project is not abandoned.
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