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HONGKONG LEGISLATIVE COUNCIL
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in a sarcastic way, because I am among those who thoroughly respect them; they are a most useful body and guide us on many points. The Chamber of Commerce took a month to consider the letter, a reply being received on May 23rd and the Chamber approved the principle of this taxation if more revent Wor
In addition Lo that required. circulated 品 report
June 28th the unficial members. 80 anungst that they have had it in their hands for a fortnigh The Government took them into its confidence, and I know that that confidence was not misplaced. We showed the unofficial members and the Chamber of Commer our hand every card in it. Now we come to the Bill and in connection with it I may say that we studiously avoided the pit- falis, profiting by the experience gained with regard to the liquor duties, of allow- ing stock in the Colony to escape he tax. This does not impose any hardship at all on the merchant, because any ind made will come down on the consuT. The traders do not lose money by it:
any good. It won't do dealers any good or anybody else. Therefore, I ask hun. members to accept the provisions of this. Bill, which have been very well thought out and of which the mercantile com- munity and the unofficial members have been given very ample notice, much greater notice than they would get in uther Colonies well known to nie.
IION. MR. POLLOCK--In reply to your' Excellency, wish to deny that the un- official members asked for this taxation.
HIS EXCELLENCY-Not for this tax- ation: I said it had been conveyed to me that unofficial members of both Councila of this Colony were anxious that some sort of increased taxation should be in- troduced.
CAJI
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HON. MR. POLLOCK--Then all
79 that say
what
been has conveyed to you is entirely wrong. I may addl that I was somewhat astonished, and 1 think that the hon. member who represents the Chamber of Commerce was also astonish-
introduced to add to the general revenue of the Colony. And I think, Sir, that
and I pay the tax when we buy our cigard, to find that this measure was being and tobacco. We have made an extra ordinary generous allowance to the petty trader and the luxurious private con- sumer We are allowing these two classes 100lbs. free. The tax will not affect 100lbs, of tobacco. If they have 101 lbs. they will have to pay a tax only on 1lb. We lost a lot of money, and we were put to untold worry and trouble and expense
the liquor duties.
allow by ing stocks in the Colony to escap the taxation, W. want to avoid that. There is one matter more. As to the question of imposing taxation in this manner, hon. unofficial members, I am informed, agreed to this imposition of taxes after very careful consideration.
HON, ME POLLOCK--Nɑ, Sir.
over
HIS EXCELLENCY-Well, then, I have been misinformed. It is necessary to increase the revenue of the Colony. We have increased the liquor duties, and the least item which we think we can tax now is your tobacco. The price of opium has already been put up. The matter is urgent because we want to lose no time. To suspend this legislation for a fort- night simply means that everybody will attempt to avoid taxation as far as they possibly can. That will not do anybody
e have the strongest possible grounds for our astonishment in view of what fell. from your Excellency's own lips on March 1st last, when speaking on the increase in the liquor duties. You said, after oing fully into a large number of figues, that about $100,000 was re- quired establish equilibrim between revenue and expenditure, and that that could be attained by the proposed in- creases in the resolution then before
With regard to the sug the Council. gestion that the unofficial members had invited this taxation, as your Excellency perfectly well knows, what the unofficial members discussed was the question of raising some sort of contribution to- wards a special war purpose, It had nothing whatever to do with establish ing rquilibrium between revenue and ex- penditure. I absolutely deny, as vehe- mently as I can, any suggestion that unofficial members have asked for, or have even discussed, taxation or the pur- pose of balancing revenue and expendi ture. I cannot understand how the unofficial members' suggestions could have been twisted into what has fallen from your Excellency to-day, that we had asked for this taxation.
HONGKONG LEGISLATIVE COUNCIL
Hrs EXCELLANCY—I did not that.
say
Hon. Mn. POLLONK— Your words con- veyed that impression, and I certainly took you to mean tha
How. Ma. HOLYOAK was about 10 speak when
HLS EXCELLENCY Amarked- You are not entitled to speak again,
HON. MR. HOLYOAK-I was about to make a statement with regar" to what your Excellency has said in connection with
suggestions by unofficia! embers. You distinctly implied that w: ha asked for this additional taxation,
more revenue.
HIS EXCELLENCY-If you wish to carry on your public works you must have This is one of the ways in which I think it can most easily and advantageously be found. And the Chamber of Commerce agree with me.
"If necessary,'
HON. MR. HOLYOAK which cannot be proved.
can,
HIS EXCELLENCY 1 great deal more, I can assure you.
and a
The amendment to postpone considera- tion of the Bill for a Tortnight was then put to the meeting and defeated, only the Hon. Mr. Pollock and the Hon. Mr. Holyoak voting for the amendment. The other unofficial members voted with the official majority
HIS EXCELLENCY-I would like first of all to answer the hon. member who re- presents the Justices of the Peace. Te
THE ATTORNEY - GENERAL then balancing of revenue and expenditur, moved the second reading of the to which reference has been made was Bill In doing SO on ä very reduced Budget. The public works were this year cut down by about $1,000,000. I do not suppose you want that sort of thing to go on. It was very obvious in March last that I would have to tax tobacco, but I was not going to tell everybody that I was going to do so, With regard to what the hon. member has said as to unofficial members suggesting the new taxation, I may say that they asked for some new taxat on, and I did not say for what purpose it would be used.
HON. MR. POLLOCK-That is not cor- reet, Sir.
HIS EXCELLENCY-If there is any misunderstanding then the fault is mine. I understood there was no objection to the increased taxation. I did not say for what purpose.
HON. MR. HOLYOAK was given permission to say ጺ few words. The hon. member
said-nofficial members distinctly understood that any new taxation would be in the form of contribution for some War purpose Or other. That was their suggestion when the matter was discuss- rd. Among the possibilities discussed in this connection was a tobacco tax, or an increase in the assessment but such extra taxation was not to be for the the pur- pose of balancing revenue and expendi
ture.
he said-I regret that the Objects and Reasons Attached to the Bill are 80 meagre, at it was not found possible in the tie at my disposal to give a more de- taied resume of the Bill. The Bill is founded upon the Hongkong Liquors Ordinance, and whole sections have been taken on that Ordinance as they stand. Certain provisions adopted in the Straits Bettlements Tobacco Duties Ordinand have been utilised. The searching passengers' luggage here is no new thing to the Colony, for it has existed here for, at least, the last seven years, if not longer. In no way can this be regarded retrospective taxation. It is a misuse of language to call the imposition of duty on tobacco in the Colony retrospectar taxation. There are two main points of interest in the Bill. in the first place the trad will want to know how the syster is to be worked. The answer is that the system will be almost the same
&9 the system under which the liquor dutie are collected. In the second place the consumer wil want to know how the duties will affect the retail price of tobacco cigar's, and cigarettes.
The answer to this is that the duties will increase the retail price by about 28 per cent. on al average. Your Excellency referred to a generous abatement of 100lbs, under secon 8 of the Bill. Any tobacco in the posession of any person under this section up to 100lbs, will be duty free. It is not in- tended that any ieco which is ex-
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