CO129-349 - Governor Sir Lugard - 1908 [10-12] — Page 6

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Under Education, the "Evening Continuation Clas- ses blossom forth (p.77) as the "Technical Institute", a separate institution costing $12,605, and provision is made for a number of additional Chinese teachers for the Anglo Chinese schools.

The programme of Public Works Extraordinary is explained in paragraph 10 of despatch. The $4,500 for a permanent stairway from the Government House ballroom balcony is to avoid the necessity for erecting a bamboo staircase on each occasion.

The position disclosed by these estimates is not satisfactory and we can only hope that the improvement in trade which the Governor hopes for next year will be realized. In view of the position as regards opium, the Colonial Government ought to be carefully considering what sources of revenue should be used to replace the opium revenue. It is not satisfactory that 1908 should show an expected deficit of nearly $600,000 and that the Estimates of 1909 should show what is really a deficit of nearly $500,000 (or nearly $300,000 if we deduct the $200,000 for the breakwater) and yet that the only new taxation imposed should be an increase of light dues of $93,000 imposed for a special purpose.

The taxation of the ordinary European is very low the only important items of what can really be called taxes on which a European can pay much being:-

W. & 8. Ltd.-16679-6000-10-07.

light

Light dues

Ordinary

Special

80,000 largely paid by persons

(not resident in Hong Kong. 93,000(

Assessed Taxes $1,365,000 1.9. a property rate varying

according to locality from 7% to 13% of the

Ma

annual value of hous es i.e. considerably less, even allowing for higher assessment than the ordinary English municipal rates.

$96,780 (largely paid no

Chair & Oarriage Licences

Spirit Licences

Stamp Duties

$261,290 (

doubt by Chinese

$600,000 (partly padd by the

(Chinese.

Of these the Death Duties are very low, consist-

which is

ing apparently of only a Court fee not excoding $400

estate of $1,000

W

on grants of Probate' or Letters of Administration and

Probate Duty of

1% on estates between $250 and $1000

2% between £1,000 and $10,000

3% on estates over $10,000

a

There is plenty of room for increase and further gradua-

tion here.

They pay no customs auties, no ordinary excise duties on googs-not even on tobacco wines and spirits-and no income tax.

I think we should point this out and ask for

the Governor's observations on the best methods of rais-

ing fresh revenue. In the meantime, he should be caution- ed to exercise strict exonomy and endeavour to reduce the deficit as much as possible. If revenue does not improve

during the year, fresh taxation, must be imposed next

year.

The question of increasing taxation was consider- ed in 1901 and 902-see 41681/01 (Mr Messer's memorandum) and 33303/02-and as a result a number of licences and stamp

263077-

--1979-8000--4-08.

auties

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