CO129-555-2 Estimates 1936 30-8-1935 - 29-1-1937 — Page 5

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which gives approximately the margin of

$500,000 mentioned by the 0.A.G. This

proposal can therefore be approved.

(2) The 0.A. G. asks the S. of S.'s

permission to announce in introducing the

Budget that, if the Budget cannot otherwise

be balanced, it may be necessary to impose

a levy on salaries. It is usual only to

impose a salary levy at the same time as

additional taxation is imposed. In Hong Kong,

even more than elsewhere, the time of a trade

depression is the worst time for imposing

fresh taxation, but nevertheless, in approving

in principle the making of such an announce-

ment, I think the S. of S. might say that

the 0.A.G. should first give consideration to

the question whether some additional

taxation, which would not intensify the

depression or inflict hardship in quarters

wast

already/adversely affected thereby, could not

be imposed at the same time as the levy, in

accordance with the principle of equality of

sacrifice, and foreshadowed at the same time

as the announcement is made about the levy.

Opportunity stund

حمد

te

laken to refer to the

Enculer despatch of 16th July 1932

(copy unnered)

megarding the general principles of framing

a

levy.

ME Costar

1|9/35.