CO129-597-1 Estimates 1948 15-11-1946 - 12-6-1948 — Page 90

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extraordinary expenditure figuro, is octimated to reach the formidable figure of $60,000,000, It is proposed to float a loan in the very near future and all this rehabilitation expenditure has accordingly been included in a schedule of works to be met from the proposed loan.

Revenue and Expenditure are dealt with in detail later in this Memorandum but the position at the 31st March, 1948, is estimated as follows:

Estimated Revenue 1947/48

Estimated Recurrent Expenditure

Surplus

1947/48

Special Rehabilitation

Expenditure to be met from Loan

$109,839,750

$109,488,433

$

351,317

$ 60,000,000

REVENUE

The preparation of an accurate estimate

of Revenue for the year 1947/48 is of extreme difficulty.

still a matter A number of new taxes and increases in import duties were introduced towards the end of the prosent financial year and they have not been in operation for a sufficient period to enable a really accurate estimate of the probable yield to be made. Moreover the Revenue during 1946 was subject to a number of abnormal influences and it is a matter of conjecture to what extent such influences will continue to operate during 1947/48.

The pre-war War Revenue Ordinance, which in effect was a form of Income Tax adapted to local conditions, is being replaced by a new measure entitled the Inland Revenue (Earnings and Profits) Ordinance 1947. But this new measure has not yet been considered by Legislative Council and the standard rate of tax has not been fixed. therefore been decided to insert a token figure of $16,000,000 to cover revenue from this source.

It has

the

Subject to the above limitations, revenue for 1947/48 has been estimated at $109,839,750 as compared with an original cstimate of $51,308,300 for the 11-month period, May 1946 to March 1947 which was later revised to a figure of $78,000,000. The difference in the two latter figures is due to the fact that revenue was far more buoyant, than could reasonably have been expected after 3 years of enemy occupation and also owing to increased taxation imposed during the latter part of the year.

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