Objects and Reasons.
1. It is provided by section 3 (1) of the Entertainments Tax Ordinance, 1930, (Vol. III of the Ordinances of Hong Kong, 1937 Edition) that there shall be charged, levied and paid on all payments for admission to any entertainment a duty at such rates as the Legislative Council
may by resolution prescribe.
2. Section 5 (1) (a) however provides that the duty shall not be charged on payments for admission to any entertain- ment where the Financial Secretary is satisfied that the charge for admission is not more than twenty cents for each person.
3. The rates at present in force are as follows:- Where the amount of payment for admission, excluding the amount of duty-
does not exceed 20 cents
exceeds 20 cents and does not exceed
50 cents
exceeds 50 cents and does not exceed
$1
Free
5 cents
10 cents
exceeds $1 and does not exceed $2... 20 cents exceeds $2 and does not exceed $3... 30 cents exceeds $3 and does not exceed $4... 40 cents exceeds $4 and does not exceed $5... 50 cents exceeds $5
50 cents for the first $5 and 20 cents for each addi- tional $5 or part thereof.
4. As the War Expenditure of the Colony recently undertaken or contemplated exceeds the estimate of revenue from the War Taxation Ordinance, the question of introducing a Resolution into the Legislative Council providing for an increase in the above rates has had to be considered; and in this connexion it has been deemed desirable to reduce the maximum for duty free admission charges from 20 cents to 4 cents and at the same time to increase the duties on all other admission charges.
5. This necessitates amending section 5 (1) (a) of the Ordinance by changing the 20 cents exemption to 4 cents which is effected by clause 2 of the Bill.
C. G. ALABASTER,
Attorney General.
December, 1940.
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