CO129-595-3 Proposed introduction of income tax 12-12-1946 - 26-1-1947 — Page 28

Mr. Emanuel

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I have read this memorandum with much interest and with admiration for the ingenuity with which it is proposed to tackle the difficulties of introducing a normal income tax in Hong Kong. It is, of course, a great pity that at a time like the present when abnormal profits must be being made and there is a surplus of purchasing power, it is impossible to introduce a sur-tax but I would not wish to question Mr. Pudney's view that this is not a. present a practical proposition.

I am particularly impressed with the ingenious way in which it is proposed to offr an inducement to individuals to come under the system of personal assessment.

7.03.15.

9.1.47.