CO129-595-3 Proposed introduction of income tax 12-12-1946 - 26-1-1947 — Page 34

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the much higher cost of European essentials in Hong Kong

compared with the U.K.) is fully appreciated. Judging by a

recent survey of colonial rates of tax, the lower incomes in

Hɔng song appear to be not leas heavily taxed than most

Colonies, but the effective rate of tax on higher incomes is

much lower in Hong Kong than elsewhere. The impossibility, at

present, of a surtax renders it difficult to remedy this latter

weakness in Hag Rong's taxation burden without hitting the

lower incomes also, but I hope to be able to effect this to some

extent, at any rate, when deciding how much of an individual's

total chargeable income is to be charged at i, i and § rate

respectively under Chapter VII.

15. In the drafting of this Ordinance ↑ have had the

and benefit of the advice/experience of Mr. F. Gilbert, of the

Inland Seveme Department and I wish to place on record my

sincere thanks for his kindness in so freely placing himself

and his knowledge at my disposal.

5/1/47

Euiwotuary...

(1.5. Budney).

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