0.T."b" 139 (Contd.)
Page
2.
240
8.
1948/49 had opened with a revenue balance of $37,063,396. Assuming realisation of the $24,000,000 estimated surplus, 1949/50 would open with a revenue balance of approximately $61,000,000. This figure, however, in his view, was inadequate to serve as a reserve for any lean period, und he felt that the position could never be regarded as satisfactory until the Colony's surplus funds had reached a figure three times in excess of that.
9.
The keynote of the new Budget is security. ExtraneoUS haponings in South East Asia generally and China proper have pro- pounded a new set of problems to Hong Kong, rendering it essential for the administration to frame its Budget on measures concerted to preserve law and order within its borders. These, in the main, pro- vide for a considerable expansion in the Police Force, and the pro- vision of the necessary funds and equipment for the Defence Force, now in process of recruitment, Heavy expenditure, both recurrent and capital, is called for at a time when the Colony's Rehabilitation Loan has been largely expended. The sum total of expenditure centering round security measures, attains the figure of $26,000,000.
10.
The estimates of revenue, $180,019,370, and an expendi- ture of $179,586,9770, present the Colony with a record Budget. The revenue estimates, based on foreseeable factors, include the H.M.G. grant of $16,000,000, representing part of the war expenditure settlement to assist Hong Kong in solving her problems arising out of war expenditure. However, even with that inclusion, on the existing basis of taxation, the revenue total was £i11 y1,000,000 to $2,000,000 below the 'iure required to finance expenditure. bridging of this gap is not solved by wholesale taxation increases, since, after careful consideration, it was recognised that an increase in the entrepot trade servicing charges to the world would have adverse repercussions, in that trade would not be attracted to Hong Kong, and would be developed elsewhere.
11.
The
Consequently, the new increases in taxation are restricted to the minimum consistent to produce a balanced Budget, their anti- cipated yield being $1,600,000.
12.
13.
(a)
(b)
(c)
They are:-
Doubling the present duty of 24f a gallon on table waters. This is the equivalent of a tax of 4f a bottle against the present one of 2; anticipated yield therefrom is $500,000 - effective April 1st.
Local postal rates, hitherto at their pre-war level, to be increased. Local rates from 5 to 10, postcards from 2-5 anticipated yield therefrom $350,000 - effective April 1st.
Stamp duty on cheques and receipts, unchanged for many years, to be raised from 10-15. Applications for import/ export licences are to bear a stamp, thus ensuring some portion of administration costs being recovered; antici- pated yield from these joit measures $650,000. An amending ordinance will be required.
(d) The issuance of a licence to be obligatory on manufactures
of finished products from raw materials, or in the repair of finished products; fae, to be a graduated scale based on number of workers employed or floor space occupied. These annual fees, at $100, $150 and $200, will provide a yield of nearly $100,000.
(0)
A measure already taken is the raising of conservancy fees, this to yield $1,200,000 additional revenue.
He emphasised that the revenue figure of $180,019,370 includes the $16,000,000 H.M.G. grant. of the nett figure which, therefore, totals just over $160,000,000, is included the Colonial Development and Welfare grant of $2,431,480.
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