CO129-615-2 Income tax 10-3-1947 - 6-2-1948 — Page 53

HONG KONG LEGISLATIVE COUNCIL

135

in the imposition of such a fee could be worked out quite simply and would not require a deep knowledge of Chinese accountancy. I need not deal with it further at this moment, other than to point out that assessment would be a comparatively simple matter and collection an even easier one-quite apart from the fact that evasion would be almost impossible.

Before concluding, I would like to say that, as I understand that a similar Bill in Malaya has been postponed for a year, I see no reason why Hong Kong cannot follow suit.

HON. MR. LO MAN-KAM.-Your Excellency, In introducing this Bill at the last meeting of this Council, the Hon. the Financial Secretary commenced his address by remarking that it would be idle to pretend that there had not been a great deal of opposition to this Bill.

The extent and representative character of this opposition on the part of the Chinese community is indicated by the fact that repre- sentations were transmitted to, or received direct by, Government from the Kowloon Chamber of Commerce, Chinese General Chamber of Commerce, Chinese Manufacturers Union, Kowloon Chinese Cham- ber of Commerce, Hongkong and Kowloon Chinese Restaurant and Eating House Merchants' Association, the Medicine Dealers' Guild, Hongkong Sea Products Merchants' Association, Hong Kong and South China Paper Merchants' Association, Pun Yew District Asso- ciation, Po Yick Merchants' Association, the Chinese bankers, the Hong Kong Property Owners' Association and the Hongkong and Kowloon Chinese Anti-Direct Tax Introduction Committee, that several petitions signed by approximately 100 organisations and associations in Hong Kong and Kowloon were sent in to Government, and that a delegation of the Executive Committee of the Hongkong and Kowloon Chinese Anti-Direct Tax Introduction Committee waited upon Your Excellency last week. You, Sir, have stated that Government has taken into its consideration all the representations that have been made. I understand that another petition signed or chopped by thousands of firms but, as far as I know, without containing any new arguments, was sent in to Government yesterday. Today, on the Second Reading of this Bill, it will be my duty to vote in accordance with my own considered opinion on its merits.

But

Sir, I am in favour of this Bill and shall vote accordingly. out of deference to all the representations to which I have referred, and in discharge of my duty to this Council, I propose to set out fully-but I hope not at undue length-my views and position in regard to this matter, which is of such actual as well as potential importance to this Colony.

His Excellency Sir Geoffry Northcote, in his presidential address to this Council at a meeting held on the 12th October, 1939, fore- shadowed the immediate introduction of an income tax for Hong Kong. At this meeting the then Financial Secretary, the Hon. Mr. S. Caine, in moving the adoption of the 1940-41 Estimates, indicated that the standard rate of the proposed income tax would be ten per cent.

52