CO129-582-7 Taxation 6-6-1939 - 5-2-1940 — Page 162

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I. Suggestions considered and rejected.

(a) Customs Duties, which at present yield

about $7,000,000, or 20 per cent of total annual revenue,

tobacco, lifquor

are confined to a very few luxury or semi luxury articles

quor and petrol, with tobacco as the largest

item. But a general tariff has always been regarded as

impractical in Hong Kong in view of its peculiar

economic and commercial situation, and the Committee

adhere to this view. They do not recommend any increase

in tobacco duties, because these bear mainly on the

poorer classes of the population; and although an

experiment has recently been made with an ad valorem

duty on cigarettes, they do not consider that any

practical benefit would be derived from a further

application of this principle to the liquor and tobacco

duties generally. Nor do they consider that any attempt

should be made to include other semi luxury articles,

e.g. radio sets. A salt tax is also ruled out owing to

its incidence on the poorer classes and the cost and

difficulty of its collection.

(b) The Committee do not think it desirable

that there should be any increase in the taxation of

motor vehicles, since they consider that any appropriate

increase in this sphere should be derived from motor

spirit rather than the vehicle. duties.

(c) The present rate of death duties is

considered to be high enough for Hong Kong; and moreover

if it is thought necessary to increase such duties, the

further revenue should be obtained by the introduction

of legacy and succession rates rather than by any increase

in the death duties themselves.

(a)