CO129-615-2 Income tax 10-3-1947 - 6-2-1948 — Page 73

HONG KONG LEGISLATIVE COUNCIL

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set up, and certain changes in the constitution of this Council are contemplated; both of these changes are designed to give the people of Hong Kong a fuller share in the management of their own affairs; would it not be better, it is asked, to leave it to the new Legislative Council and to the new Municipal Council to decide both on the manner in which taxation is to be levied and also on the manner in which the money so raised is to be expended.

Honourable Members, we are closing no door. I do not myself suppose, and I do not think that any Member of this Council can suppose, that the Legislative Council of Hong Kong is to-day for the last time debating, considering and deciding what method as well as what rate of taxation is best suited to the needs of the Colony. The Council may be very sure that the introduction of other methods of taxation and even the modification of this method of taxation will fall to be discussed and decided for the Hong Kong of the future by its future Legislature.

And so far as the purposes of our expenditure are concerned let me call the attention of the Council to the fact that such specific provision as has been made in our 1947-48 Estimates for expenditure by the newly constituted Municipality has not been allocated to any specific purposes. We know, of course, that the Municipal Council is going to need in a full year far more than the provision which has been made in these Estimates as an initial grant, besides what it will need for services at present covered in the expenditure estimates of existing departments of Government. The point is that what we are now providing, and of course all that will be provided in the future, will fall to be expended in accordance with the wishes and views of the Municipal Council itself. And to some extent also the same is true of the expenditure which is controlled by this Council. There is within the framework of our Estimates a very considerable degree of latitude, and it is open to the Legislative Council and to the Finance Committee of the moment to exercise its influence on the expenditure of the Colony at all times in the financial year and not only at the moment of the passing of the annual Estimates. So that much of the original yield of this year's tax, and all of the surplus which in the opinion of some it is going to produce, together of course with all the yield of future years, will be expended in accordance with the votes, views and wishes of the reconstituted Legislative Council.

And for the rest, Honourable Members, if further justification is needed for the present actions and financial policy of the Government and of this Council, I have only this to say. We to-day must act in accordance with our lights, the lights of to-day. The lights of the future may be brighter and show us the way to better paths. Every one of us can work for that, in hope and confidence. But we must not for that reason stand still and wait for the brighter light. Ours is the responsibility to-day.

H.E. THE GOVERNOR.-The question is that the Bill intituled "An Ordinance to impose a Tax on Earnings and Profits" be read a Second time. Those who are of that opinion say "aye", those who are of the contrary opinion say "no". I think the "ayes" have it.

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