CO129-615-2 Income tax 10-3-1947 - 6-2-1948 — Page 64

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HONG KONG LEGISLATIVE COUNCIL

The suggestion of a purchase tax or a tax on luxuries has been prominently advocated.

Whether such taxes could bring in any revenue comparable to that on the basis of the present Bill is to me exceedingly doubtful. However, I have a much stronger objection, and that is that it would not catch the man with money; on the contrary, the poor man would relatively be the one to pay.

I think it would be a fair thing to say that a person in receipt of a substantial income does not spend any more money than one in receipt of a moderate income on his living expenses. After a time a man with a large income will use the surplus in his business or other investments. The result is that such a tax will not only relatively hit the poor man harder than the rich one, but at the same time you will fail to obtain a fair share of the payment of taxes from the man with money, which is what one might call a legally inequit- able tax.

Another suggestion is a lottery. I have no moral objection to lotteries from a personal point of view, but I am not so convinced that there are no such objections when it becomes a matter of state.

In England, and I believe at the present time in China, such lotteries as are contemplated in this suggestion are not permitted; on the contrary there is active opposition to them.

Whether, in the circumstances of this Colony, having regard to such objections, they should be permitted, I have very grave doubt and so far as I am personally concerned I should be very much against them.

Apart from the moral or political angle, I do not think they would be effective to produce the necessary revenue.

There are state lotteries in Australia, but I did not find any particular interest taken in them, and they can form only a small part of the revenue which is raised.

A further point I should like to make is that under this Bill public and other companies will contribute very large sums of money, sums much beyond those that are at the disposal of individuals. But, Sir, is it realised that none of this money could be put into a lottery, as I have yet to come across a company where one of its objects was to invest in lotteries, and clearly in no case could the directors do so, however anxious they might be to help in a good cause.

Can it be seriously suggested that the subscriptions of individuals could approach the sums that would be collected under any form of direct taxation, however modest, from these wealthy companies?

I at least am satisfied that the millions that it is said would come from this source is only wishful thinking, and if it were not I should be even more firmly opposed to the idea.

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