CO129-591-7 Estimates for 1946-1947 12-12-1945 - 14-3-1947 — Page 43

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capital from China property,

ina,property

often in a completely ruined

condition, is being purchased at prices which bear no

relation to its real value so that the tax on a single

transaction will often amount to a considerable sum.

5.

Legislation is also about to be introduced to

provide for a 10% tax on the value of all meals, costing

over $5.00 per head exclusive of drinks, served on the

premises of holders of restaurant licences and on all

drinks regardless of value served in such premises or on

the premises of holders of publicans' licences. This

measure is primarily aimed at the expensive Chinese

restaurants where charges are extremely high and where the

amounts spent on meals are far greater than is generally

realised. Naturally it will apply to all hotels and

restaurants but, in order to prevent any rise in the cost

of living for that considerable section of the European

community which is at present compelled to live in

hotels owing to lack of accommodation elsewhere, provision

has been included for meals costing less than $5.00 to be

exempted from the tax. In China a large proportion of the

Revenue is derived from a levy of this nature and it is

confidently expected that the revenue produced 'in

Hong Kong will be substantial. In this instance also

there is nothing definite on which an Estimate can be

based but if the figures obtained in regard to the daily

takings of the principal restaurants are at all accurate

the revenue produced may amount to $15,000,000 in a full

year. Some leading members of the Chinese community

consider that this is an under-Estimate.

6.

A fresh increase in the charges for water has

ensured that there will be no loss on this service in

spite of the further increase in wages which has taken