CO129-576-10 Estimates 1940 6-10-1939 - 22-10-1940 — Page 204

HONG KONG LEGISLATIVE COUNCIL.

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undesirable because they use up exchange resources. The conclusion has been reached that this can best be done in two ways, first by the imposition of taxation with the deliberate object of checking con- sumption. With that end we propose to double the tax on petrol and foreign wines and spirits and, since consumption of luxuries, even from sterling sources, is to be discouraged, Government proposes to increase the duties on Empire wines and spirits by 25%. These increases have been given effect to by an order signed by Your Excellency this afternoon in pursuance of your powers under the Public Revenue Protection Ordinance of 1927. There was no time to give you notice of the resolution to be introduced in this Council, but that Ordinance empowers Your Excellency to bring into application imme- diately in advance of the introduction of this formal resolution when you have approved of such introduction. The necessary resolution will

be duly moved at the next meeting.

In considering the petrol taxation I hope that members will keep prominently in mind that the authorities in the United Kingdom have taken the very much more drastic step of direct rationing of private users, granting them sufficient supplies for a mileage of 2,000 miles a year. The measures we propose are very mild compared with that, just as in everything else, taxation and control, the Hong Kong citizen is being treated less severely than the United Kingdom resident. It is not desired that the increased tax on petrol should hit the commer- cial users, that is the buses and lorries; therefore the tax on diesel oil used by the buses and some lorries will not be increased and, as some offset to the additional burden on petrol-driven lorries, the annual licence fee on such lorries will be reduced to a nominal charge of $5 representing in most cases a saving of from $85 to $115 per annum. Vehicles which have already paid licence fees for this year will be eligible for proportionate refund as from the 1st October. No similar concession will be made to taxis but the additional burden of the petrol tax in their case may be regarded as a substitute for the special taxation of the taxi operators which was suggested by the Taxation Committee but which the Government does not now intend to pursue. The second action which it is proposed to take to limit exports which are undesirable from the exchange point of view is the enactment of legislation enabling the Government to prohibit the import of specified articles except under licence. It is proposed that licences should be issued freely when the importer is able to give guarantees that the articles will be sold only for re-export but very sparingly in other cases; and the application of this system will be limited to articles which can conveniently be controlled in such a way. The bill of an ordinance to provide for such a system will be introduced as early as possible.

I now move formally the Resolution standing in my name, that the draft estimates for 1940/41 be approved; but in doing so I give formal notice that amendments on the lines just indicated will be proposed in the Select Committee to which the Resolution will pre- sumably be referred. (Applause).