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HONG KONG LEGISLATIVE COUNCIL
On this aspect of the matter I feel very strongly that the im- position of a moderate tax is not only a question of amount but of principle in the circumstances of this Colony.
I do not think it necessary to elaborate this point at the present time, as I am satisfied that the present bill is within this principle, but I certainly reserve freedom of action if it is proposed the Bill should be expanded beyond its present limits.
I have, Sir, endeavoured to give the reasons that have led me to the opinion that I should support this bill as being the most appropriate form of taxation for this Colony in raising the revenue that is needed.
I should perhaps add that the original form of this bill which based this year's taxation on last year's income I could not have supported as, in my view, which I have also previously expressed, last year was such an abnormal year that nothing could fairly be based thereon. However, the alternative that has now been embodied as a result of the reference to the last Taxation Committee, so far as I am concerned, meets this objection.
In conclusion, Sir, I feel that this bill, moderate in tone, is suited to the present circumstances of this Colony and is desirable in pre- ference to other forms of taxation on the ground that in the final analysis it is a measure which, if efficiently and justly enforced, is orderly, effective, and the least likely to add to the general cost of living and cause consequential unrest.
THE COLONIAL SECRETARY.-It is obvious from some of the things said here this afternoon, particularly by my Honourable Friend Mr. Landale, and obvious also from the representations that have reached Government in regard to the Bill that there is some anxiety about the way in which the proposed tax machinery will work, and how efficiently it will work. There is a fear that while the honest man will pay, the rogue will escape, and there is also a fear which is held largely by smaller concerns that a host of Government Tax Inspectors will descend on their premises and pry into their secrets and perhaps disclose them. Very briefly just now I would like to try to allay some of these anxieties.
I think it worth remembering, as the Honourable Mr. M. K. Lo remembered, that the Taxation Department is not starting quite from scratch. It was going on in 1941. I do not think many people would quarrel with me if I were to say that it was in successful operation in 1941. At any rate, I do not recall any very serious protest im- pugning either its efficiency or its methods. Indeed I think it would be true to say that the relationship between that Department and the public was fairly good, and I would like to assure Council that it will be Government's intention to maintain and foster that relation- ship in the future.
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