CO129-597-1 Estimates 1948 15-11-1946 - 12-6-1948 — Page 132

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REPORT OF THE TAXATION COMMITTEE

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The Taxation Committee was appointed by His Excellency the Governor on the 13th September, 1946, with the following terms of reference :-

2.

"(i)

(ii)

(iii)

To review the present system of taxation and to advise what changes should be made in order that the revenue derived from taxation may be effectively increased during the current year, and in order that in the financial year 1947-48 the Colony may be enabled, as nearly as may be, to balance its budget.

To consider in particular

(a) What new sources of revenue are available for immediate

utilisation.

(b) What enhancement of the rates of existing taxation is practi-

cable.

(c) Whether, and if so by what date, it will be expedient to

replace the taxation now authorised by the War Revenue Ordinance by the introduction of an Income Tax.

To submit interim recommendations on any changes in taxation which in the opinion of the Committee should be introduced forthwith for the purpose of reducing to the greatest practicable extent and with the least possible delay the dependence of Hong Kong on His Majesty's Goverment for financial assistance in connection with the Colony's recurrent expenditure."

The following were appointed members of the Committee :-

The Honourable the Financial Secretary (Chairman)

The Honourable Mr. A. Morse, C.B.E.

The Honourable Mr. M.K. La, C.B.E.

The Honourable Mr. R.D. Gillespie

The Right Reverend R.O. Hall, Bishop of Hong Kong

Mr. W.M. Thomson, Director of Supplies, Trade & Industry

Mr. Lawrence Kadoorie

Mr. J.J. Ruttonjee

Mr. Kwok Chan

Mr. Richard Lee

Dr. Y.S. Wan

Mr. E.W. Pudney, A.Ç.A.

Mr. E.W. Pudney was appointed Secretary of the Camittes.

3. An invitation was extended to the general public to make representations or to appear before the Committee, but the response was disappointing. eight representations were received and there were no applications to appear

Only before us.

The representations received contained a number of interesting suggestions.

With

4. Nine meetings have been held and we have reviewed the Colony's existing taxes with a view to possible increased and to the tapping of new sources of revenue. In conformity with our instructions to endeavour to increase the revenue of the current year, several of our recommendations have already been submitted to Government and have been, or are now being, put into force. regard to the full year 1947/48, we have aimed at increasing the existing Revenue by $45,000,000. Throughout our deliberations, we have been guided on the one hand by the urgency of the need for additional revenue and on the other hand by the need to maintain the position of Hong Kong as a free port, dependent almost entirely on its transit and entrepot trade, by the desirability of good relations and ease of communication with the surrounding district of China and by considera- tion for the economic condition of the poorer sections of the community in Hong Kong.

5.

Under para.