CO129-615-2 Income tax 10-3-1947 - 6-2-1948 — Page 63

HONG KONG LEGISLATIVE COUNCIL

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In conclusion, I must impress upon Government the necessity of revising and reconsidering the whole question before forcing its will upon a reluctant public, and in face of such strong opposition from all quarters. It is already suggested that to oppose would be useless, since Government is determined to pass the Bill. Nevertheless, I sincerely hope that, in this particular case at least, Government will heed the pleading of a long docile public.

HON. MR. M. M. WATSON.-Your Excellency, On this very important and controversial measure I feel the importance of making my position quite clear, not only in accordance with my duty to this Council but also to the Unofficial Justices of the Peace who paid me the honour of electing me to the Council.

In the course of one of the earlier meetings of the Unofficial Members of this Council the principle embodied in this Bill was accepted, but for various reasons some of the members were not prepared to agree to the enactment of this present measure.

I think that I can also safely say that the majority of people with whom I have discussed this bill have also agreed on the principle being sound if it can be equitably applied.

The principle, as I understand it, being conceded, I will not say on all sides, but by the majority of people who have considered the matter, it is unnecessary on this point to say anything more than that I am with the majority.

The question is, therefore, in my opinion, the consideration of the objections to this particular case, and alternative taxation.

The fear amongst some sections of the community that the Bill will in practice operate inequitably is more than a question of imagina- tion and it is essential that an efficient department for the collection of the tax should function from the beginning. If this is not so, such fears will, I am convinced, prove to be well founded.

That there will be evasion no one will deny; it is a question of keeping it within bounds, and the relative merits of other forms of taxation.

In connection with such other forms of taxation, I have read most of the suggestions that have appeared in the press, where they appear to have been well ventilated.

The three most persistent suggestions have been, I think, import duties, purchase tax and lotteries.

The import duty suggestion seems to have died out as being contrary to all hitherto recognised principles in the conduct of this port as a free port. I do not profess to have sufficient knowledge to deal with this point with authority, and it would now appear to be unnecessary.

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