CO129-594-5 Financial Policy Directive 21-2-1945 - 6-10-1945 — Page 6

CO129 Colonial Office Hong Kong Records 理藩院香港檔案 All

Irma he

Same TEMY

mcm

bepu Lope to han thi

exput shalt

you may chy

suh.

I agree. It would be quite impossible at the moment to push ahead with the introduction of an orthodox income tax. It is perhaps worth explaining that the Hong Kong war taxes were a reasonably complete substitute for an orthodox income tax, and for myself, I was satisfied, when they were adopted, that we had got 90% of what we wanted at the time. I hoped then, and sti 11 believe, that in due course an ordinary income tax would be substituted, but the war taxes will do very well for the time being.

6

14.9.45.

Thai phane revise

·

purposed scubmit pa

sur approval.

Savant..

16.9

22:9

(+)

بلی

alruu

Jeen

17.9

This directive on the long-term financial policy, Hong Kong, is submitted for approval.

The most important points are that, in general, revenue should be collected in accordance with the legislation before the Japanese occupation and that "in due course, consideration should be given to the introduction of a general income tax".

This wording has been agreed with the C.C.A.0., and with lir. Caine in view of the opposition in 1940-41 to the introduction of a general income tax, vide the notes at (4).

It is the policy that Hong Kong should remain a free port with import duties confined, as in the past, to liquor, petrol and tobacco, with pre-war preferential duties unless H.M.G. varies its policy in this respect. The opium monopoly is not to be restored.

I annex for reference a copy of the Civil Affairs Honetary and Fiscal Guide issued by the W.. to the go.c.

Exerseas.Äennischion which contains instructions on banking and currency.

The long-term policy directive may be approved.

9.5. Wodeman

El 7.2119 978 2019

19. 9.45.

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