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Wednesday, February 28, 1973
DUTY ON CONTRACT NOTES TO BE DOUBLED
New Rate Effective From Tomorrow
The present rate of ad valorem duty on contract notes in respect
of share transactions will be increased by 100 per cent as from tomorrow
(Thursday)
An order to this effect was signed by the Governor this morning
under the Public Revenue Protection Ordinance,the Financial Secretary,
the Hon. C.P. Haddon-Cave, told the Legislative Council when presenting
his Budget proposals today.
Mr. Haddon-Cave considered that the move would help to somewhat
restore the balance of the system between direct and indirect taxes.
He also advanced two other arguments for the increase.
"First," he said, "there are a number of active investors buying
and selling in the various exchanges who are on the borderline between
dealing for profit and investing funds earned or acquired from other
sources.
Mr. Haddon-Cave felt that a higher rate of stamp duty on notes covering their transactions represents a fair way of creaming off something
extra from them for the revenue. Er
In addition, he said, the Commissioner of Inland Revenue was being given staff to make enquiries into the activities of habitual dealers.
These enquiries would aim at establishing that the dealers "are carrying on business or adventures in the nature of trade, thereby bringing their rewards into charge for profits tax."
/Secondly,