1936-06-25 — Page 7

HONG KONG "DAILY PRESS; THURSDAY, JUNE 25, 1936.

MOTOR FEES MAY COST MORE

ESTATE DUTY BILL

CRITICISED

Mr. M. K. Lo Asks Reason For Increases

AT COUNCIL MEETING

Criticism of Government's policy in bringing down the bill increasing the estate, duties was made by Mr. M. K. Lo at the meeting of the Legislative Council yester- day.

W

Mr. Lo remarked that although he welcomed the bill as a collector of revenue, he had been unable to find a Government reason for it apart from the fact that death duties in Hong Kong were lighter than elsewhere. -

The Attorney General (Mr. C. G. Alabaster) re. plied that the object of the bill was to increase revenue.

TO INCREASE REVENUE

When Mr. Alabaster had moved. and the Colonial Secretary had seconded the second reading of the bill, Mr. Lo sald:-

I desire to make some observa- tions on the motion now before the Council,

"EASIER TO EVADE PAYMENT

I submit. that the fact that the estate duty is on a certain scale Malaya. or in the United King- dem. or. indeed. in any other place. cannot be

criterion of what the scale should we in Hong Kong, nor be a cogent reason for amending our law. unless all the relevant circumstances .between the contrasting places are com- parable.

The first Estate Duty Ordinance. replacing the probate daty former 13 payable under the Stamp Or- dinance, 1901, was passed in 1915. The scale of duty under the 1815 Ordinance remained in force un-

I refrain from discussing the til 1931." when the Estate Duty differences relevant in this case. Amendment Ordinance. 1931. was But I feel I ought to refer to one

point of difference which may de feat the very object of the legisla

increase the Colony's revenue. tion, which must obviously be to

passed

This 1931 Ordinance effected "Various amendments n the law which 18 years experience of the working of the 1915 Ordinance rendered desirable, and any in- crease in the scale of duty pay able.

Both in the United Kingdom and in Malaya the residents have more of the character of perma- nence, and therefore mere legisla-

vé machinery may prevent what

| DOGS WELL BE

BARRED

FROM BEACHES

Tents Confined To Special Areas Only

NEW REGULATIONS

The prohibition of dogs from

RISE IS POSSIBLE

NEXT YEAR

Governor's Hint To The Council

beaches was mentioned by the PETROL TAX INCREASED

Attorney General (Mr. Ala- baster) when he introduced legislation for the control of beaches in the Legislative Council yesterday.

Mr. Alabaster said the bill was published for information in the Gazette of June 5 and the regula- tions for bathing places on pages" 13 and 14 of the bill had attracted notice in the Press.

"With regard to the suggested by-law (2)" he said "It will be i noticed that dogs (except on, a tead; will not be allowed upon the bathing beaches set out on page 4 or in the water at or near these beaches."

It is the opinion of the Gor- ernment that dogs are a nul- sande on these beaches and the question of prohibiting them, even when on a lead. can be considered in committee on the second reading.

Another regulation to which think I should draw attention is regulation 2 (4) on the top of page 14. from which it will be seen that private tents on the matshed beaches will only be allowed in special areas allotted and marked off for them. !

It is not the intention of the

Government to allot any such area at Repulse Bay. where there is ample accommodation for bathers who have not matsheds, nor is it

the Intention of the Government

to allow the erection of tents in front of the matsheds at any matshed beach,

The bill passed its first reading.

I may call legal evasion of duties, the revenue of the Colony can be

Le.. evasion by removing or trans-appreciably augmented in these ferring assets from the scope and difficult times. reach of the legislation.

But in Hong Kong the popu- lation is more transitory, and it is therefore relatively easier to evade the payment of datles.

It is estimated that the yield of the new duties will increase our "revenue by $200,000 in a complete year, and the object of the bill is to obtain that increase

In proposing the first reading I compared the proposed duties with those prevailing in Malaya, just as I compared the duties we imposed

The possibility of an increase in motor registration fees was foreshadowed by the Governor (Sir Andrew Caldecott) at a'meeting of the Legislative Council yester- day.

3

He revealed that the question had been under the consideration of Executive Council and although action - was not now contemplated, it was probable that an in- crease would be made in July next year:

Because however, of a 'drop in petrol tax revenue, an increase of five cents a gallon duty was sanctioned by the Council.

REVENUE SHOWS DROP

In moving that the petrol tax be increased, the Colonial Treasurer (Mr. Edwin Taylor) sald:---

Revenue for 1936 at the present rate of 25 cents per gallon was estimated last August at $670,000. The actual revenue received during The 1835 amounted to $863,327. receipts this year up to the end of May amounted to $266,900, and if maintained to the end of the year.

keeping our rates substantially lower than those in other places to avoid driving away capital which might be brought here for

investment.

In the United Kingdom the maximum rate is 56 per cent. In some Celonies it is as much as 40 per cent.

In Malaya it is 20 per cent. which is the figure at which we propose to Ax our own tax'mum, but with this important differance. In Malaya it is 20 per cent, on estates

$10,000,000 in exceeding

do

to nct propose value. We

cent, unless the charge 20 per estate exceeds $20,000,000 and our other percentages from six to 19

compared with the

On referring to Hansard E have not been able to discover any reason given. for the in- crease. except by way of in- ference from the Attorney General's statement that Hong Kong had been "exceptionally fortunate" as compared with certain other places named. To-day. after the lapse of only five years, we have the present II. therefore. the incidence 15 bill. Here again I have not been made too onerous, those who are able to discover, either" from the not permanently resident here will "Objects and Reasons." or from have 3 greater temptation to 1931 with those of other per cent are graded correspond- the Attorney General's remarks in evade the duties, by transferring Colonies and the United Kingdom.ingly when introducing the B, any reason estates out of the Colony. And not with a view to imitating the Malaya scale. for the increase except, again, by the increased amount levied on rates prevalent elsewhere, but to way of inference from the Attor- those who cannot escape may not

show that estate duty is regarded ney General's observation that compensate for the 'ncreasing as a legitimate source of revenue

even at 20 per cent. the new amount evaded.

and to show that in framing our rates will be lower for the larger

scale we had been careful, by estates than those existing in Malaya."

+

п

SOMETHING MORE COGENT

I respectfully submit that. on

NOT ONEROUS

I observe that up to $200.000 'the rate under the Bill and under existing law is the same, namely. six per cent.. From $200,000, to

the introduction of any new legis- $800,000 the new rate is one per lation. Government should have. cent. in respect of each $100.000, as a reason for such introduction,s that the rate becomes 12 per something more cogent than the cent.

on and up to $800.000,

fact that the law in some other] whereas under the old rate the in- place happens to differ from that of Hong Kong.

In this particular case, why should the scale be increased again? Was the yield from estate dutles less than reasonably antici- pated? Do the total receipts from death duties in a year bear tou low a ratio to the total revenue of the Colony?

What is the estimated" increase in the yield of death duties, as the result of the proposed amend- ment?

We

know nothing about these points, and therefore we have to judge the necessity for or reasonableness of this Bill as best we can.

But I may observe that, accord- ing to the Colonial Treasurer's in-

crease in percentage is one p cent in respect of avery $200,000 up to $800,000.

Under the new scale the excess

over 12 per cent., and up to 20 per cent.. begins to apply only from an amount exceeding $800.000, and up to an amount exceeding $20,000,000.

As the burden of increase under the new scale only falls on the larger estates, and as the maximum percentage is 20 per cent.. I do not say that the new scale is unreasonably onerous.

I go further, If. as the rest of this bill, the revenue of the

Colony, in these difficult times, can be appreciably augmented, I welcome this "bill.

press the hope that the scale to

BILL PASSED

The bli went through the.com- mittee stages without amendment and was read a second and third time and passed.

Government Makes

Gasometer Inquiry

The transfer of all the gasometers in Hong Kong and Kowloon to either Kennedy Town or Ma Tau Kok was announced as possible by the Colonial Secretary (Mr. R. A. C. North) when replying to questions by Mr. T. N. Chau in the Legislative Council yesterday.

Mr. Chau's questions and the replies by Mr. North were:-

11

at the same rate, the revenue from this source for 1936 should be about $640,000, or $30,000 below the es- timate

This may possibly be op- timistic as although more mo- tork are used the tendency is ro cari of low petrol employ consumption more and more. "Trade depression must Also

have its effects.

It is now proposed to increase the duty per gallon by Ave cents. to 30 cents which should produce a further $60,000 for the remainder of the year, making the total re- ceipts under this item $700,000 for

1934

ROAD COSTS

As there is a direct relation ́be- tween such a tax as this and the cost of roads I will give a rough estimate of the annual cost:

Personal Emoluments.

etc.

$154,000

50,000

Personal Emoluments, etc, (Administrative Staff). Recurrent Man- tenance and Im- provements 1936. 168,000 P. W. E. and · Other Charges (34% on total expenditüre 1928/35).......... 211,000 Special Expenditure (15 on total ex- penditure 1920/35).

17.000

$600,000

(Pensions, passages and cost of housing the staff are not included.) Regarding the figure $188,000 for maintenance and improvements 1 would point out that the several votes for this purpose were severely pruned last January when the fu ancial position was examined, the total provision as allowed by the estimates being reduced by no less than $119,000

In 1933 the provision for recur- rent maintenance and improve- ment amounted to $462,000 and Answer: The advice of the home this sum has been reduced yearly authorities on the desirability of since till the above Bguze of $168,- Question: With reference to the special legislation for the com-000 for 1936 3as been arrived at Colonial, Secretary's replies to the pulsory external inspection of gaso-

· MORE ROADS questions asked by Mr. R. H. Kate- meters has been obtained. Gov- wall in this Council on January 10, ernment has also had the beneft 1935, in regard to the explosion of of the advice of the Institute of a gasométer at West Point, will the Government state whether it has been finally decided to move the gasometer at West Point to a more sultable site; and, li so, where the site 13?...

Gas Engineers subject.

England on this

Since 1933 the length of the Hong Kong roads has increased and, during the same period, the annual expenditure on mainten- ance has been greatly reduced. Our roads are deteriorating in conse- quence, and the Director of Public concerted Works is very much

In view, however, of the fact that a gasholder committee of the In- stitute of Gas Engineers has re- cently been examining in conjune- Answer: The Hong Kong and tion with the Home Office the about the future.. China Gas Company has purchased question of the internal inspection

The sight additional duty of five land now known as Inland Lots of gasholders it has been con- cents per gallon on light oils es Besides pointing out the danger 4097 and 4098 to the south of the sidered advisable to postpone fur-timated at the prezent rate, of teresting and illuminating report that unduly high rates may de cattle depot at Kemedy Town, ther consideration of the matter petrol consumption to produce on the finances of the Colony for feat the aim of the legislation One gasometer of 500,000 cubic feet until that committee has issued its $120,000 in a full year will go some

from 1935. the revenue

estate the object of my remarks is to ex capacity has already been erected recommendations.

way towards meeting the bill for dutles was $1.011,609, which was

on this area to replace the former

necessary repairs actually more than the estimate of legalised by this bill will not $1.000.000. The estate duty re-

main gasometer at West Point. be further increased dierely be- venue in 1935 comes to slightly cause of a higher scale obtaining Government understands that the company proposes to transfer at more than 34 per cent of the total in some other place, and that in

a later date all the remaining revenue of the Colony.

future reasons for any change in

gasholders in, Hong Kong and the law may be given to this Kowloon either to Kennedy Town Council in a 'ful'er measure.

or to. Ma Tau Kok,

And I may add that from Sell man's Encyclopaedia of Social Bctences, which I have consulted, 3 find the following remark:-

"During recent years inheritance taxes have yielded over ten per cent. of the Natonal Tax Revenue

SOURCE OF REVENUE

Mr. Alabaster repiled:--

I am glad to see that Mr. Lo does not regard the proposed new

in England. over five per cent. in scale of estate duty as unreason France, and less than one perably onerous, and, that, he wel cent. in Germany.”.

comes the bill If, as a result of it,

HOME" ADVICE Question: Whether advice of the home authorities has been obtained as to whether special legislation for the compulsory inspection of gasometers is desirable here?

I now 'move

solution:

the following TE-

An officer of this Government at present on leave is under instruc- tions to visit the proper authorities at home with a view to acquiring "Resolved, under Section 7 of the the latest information regarding Motor Spirit Ordinance, 1930, Or- maintenance and design of gas dinance No. 4 of 1930, that the holders from the point of view of duties on light oils as set forth in public safety.

the Heeglution passed by the Legis- Question: What action does thelative Council on the 22nd day of Government propose to take in re- October, 1931, be increased "to, 30 gard to gasometers in other parts cents per gallon." of the Colous?...

The acting Colonial Secretary Answer: The reply to this ques-(Mr. R. A. C.. North) seconded, tion is contained in the foregoing ansWCTS.

(Continued on Pars-11)

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