PUBLIC RECORD.OFFICE
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revenue. Therefore, to make a fair comparison, he should include the municipal revenues of the United Kingdom. These (excluding loans and contributions from general revenue) appear, from page 236 of the "Statesman's Year-Book," to be about £50,000,000, making our total revenue £136,000,000 (instead of £86,000,000). Thus the British taxpayer, out of every pound of revenue, contributes to the Army and Navy (excluding interest on National Debt) 4s 3d. instead of 78.
On the other hand, taking the last two years, 1886-7, and excluding the special expenditure on the new Defences, which has amounted altogether to £116,000, Hong Kong spent on an average as military contribution $126,500 out of a revenue of $1,400,000, ie., at about the rate of 18. 10d. in the pound.
As to the charge per head of the population-- according to the census of 1881-Hong Kong contained 160,000 people, and in 1887 the estimated population was under 186,000.
was
Taking this last figure the charge per head
£25,000 186,000
= 23. 8d.
But, in comparing charges per head, the relative poverty of the inhabitants has to be considered. This cannot be directly estimated. but it may be noticed that of the above 186,000 over 175,000 are Chinese, many of them exceed- ingly poor, of whom 30,000 live in boats.
The Chancellor of the Exchequer says that the fortunate Hong Kong taxpayer
" pays no customs duties, no excise duties, no income tax."
As regards the first, Hong Kong is, and always has been, a free port. To this fact it owes its present prosperity in comparison with other porta. To introduce customs duties would destroy that prosperity and upset the whole course of British trade with the East. Such a proposal would be strenuously resisted by the whole mer- cantile and shipping interests of this country.
It is not strictly accurate to say that no excise duties are levied, when there is an item of $244,000 in the Colonial revenues on account of spirits and opium. Again, it is inaccurate to say that the Hong Kong traders do not contribute to the Income Tax. They, on the contrary, contribute very largely, For instance the Indo-China Steam Company pays (Imperial) Income Tax on the whole of its net earnings, not one penny of which is made in this country.
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The branches in Loudon of local banks, insurance companies, mercantile houses, &c., pay in England Income Tax on all profits attaching to such branches or agencies, and all dividends earned in the Colony and paid here have again to pay Income Tax. Indeed, all profits made in the Colony and paid in this country contribute to the Imperial revenue through the Income Tax, and it is impossible to carry on the financial operations, the China loans, and other business of magnitude, mainly controlled in or from the Colony, without paying taxation in England in the shape of Stamp Duties and in other ways,
3 PUBLIC RECORD OFFICE, LONDON
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