1939-11-17 — Page 2

PACE Z-HONGKONG DAILY PRESS

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THE HONG KONG JOCKEY CLUB

GENERAL

TAXATION IN HONGKONG COMPARED

Continued from Page t

HON. MR. A. L. SHIELDS REMARKS

FRIDAY, NOVEMBER 17, 1939.

WITH OTHER

basis of assessment. It was said should not be done at the expense chest to the full extent of Its re- that when land in the bustness of Health and Education.

sources as a token of the Colony's centre was $60 and over per square). Although the present not loyalty to the Imperial Govern foot it was dearer than land opportune for me to advocate | ment. Lombard Street in the City of Larger appropriation for the ex- London I admit the value of the tension of these essential services, dollar was higher than at present. I feel that in the matter of educa:: THE ELEVENTH EXTRA

Rents of private dwellings are tion I must call Government's at The Hon. Mr. A. I Shields suid: RACE MEETING will be held I am glad to have the opportun-higher than in England which is tention to the lack of provision for (weather permitting) at HAPPYity, owing to the adjournment of partly due to the cost of preparing the building of model vernacular VALLEY on SATURDAY, 18th the debate on the War Budget, of sites, the charges for sewerage and primary schools as recommended November, 1939, commencing at

connections. permits for by Mr. Burney in his Report issued access over Crown Land, etc. 2.00 p.m.

considering the speech made by water the Hon. Financial Secretary in support of the Income Tax mensure

The first Bell will be rung at proposed by Government in which

1.30 p.m.

יו

MEMBERS' ENCLOSURE No One without a badge, will "be admitted to the Members' Enclosure. Such must be worn throughout the duration of each Meeting in such a manner as to be readily identified.

he dealt with the storm of disap- proval from all sections of the community as voiced by the Unoff- clal members of Council who pre- ceded him.

The Financial

handled the case for Government. Secretary ably

but dismissed in cavaller fashion the alternatives for providing a contribution to the Imperial Ex- chequer which, had been put for ward by representatives of many interests

on May 27, 1935. In urging Gov- ernment to give this matter its careful consideration, I will quote the following passage from the Report in regard vernacular education Colony:-

"It is

td

primary

the

Li

PLACES

agree

The impact of the war in Europe; Financial Secretary wili is beginning to tell on a large with me that the financial posi- section of the Colony's manufaction of the Colony is not at all turing industries such as cotton precarious but is, in fact, quite goods, shirts and singlets, rubber sound, The Colony's surplus at the wares and shoes, cosmetics and end of 1939 would probably be electric torches and batteries, more than what is budgetted for mainly due to increasing cost of in the revised estimate when we Imported raw materials and tran- take into account the fact that sport. Any further encumbrance duties on petrol and liquors have which a new Impost such as In- ocen doubled and the increased come Tax may impose upon those assessment came into effect on Industries may compel them to the 2nd half of the year move out of the Colony. What I

In my humble opinion lf Glov~ nkk 15 that the Governmentemment fail to raise the necesIATY abou'd not make it more difficult amount of revenue for the re- for these industries to carry oquirements of the war budget by if it can possibly help 13.

means of taxation other than In- EXCHANGE CONTROL

come Tax, the Government could fall back on the Colony's surplus In the matter of Exchange Con- which at $13,582,235,00 trol the Government has re-January, 1, 1938, represents over 38%

AN.

as

on

The Chinese Community are most grateful for the prefac- tion and security afforded to them in this Colony and I feel that they will not hesitate to give their support to the Gor erament in any

financial measures other than Income Tax in connection with the A man at Home paying £40

war. The opposition to the per annum for a house in the

proposed imposition of Income suburbs with taxes at three

Tax as far as the Chinese are times the rate in Hongkong

concerned, is not based on any (Kay 50%), that is £60, pays!

political grounds but 1s the equivalent of $960 per an-

entirely for economic reasons. num or $80 per month. What can he get in Hongkong for

I share the view which has been a serious weakness in that rent inclusive of the pre-

Hongkong's educational system expressert both inside this Cham- sent 17% rate?

with result felt through the school ber and outside that in view of The long list of Government career of many of the children that the peculiar economic structure ormised this Colony's pecular of the total ordinary, revenue for charges for permits, stamps fees. the school in which the primary of the Colony as an entrepot position and was quite right in the whole year.

be considered. Many foundations are laid should be of which le ant to be adversely af- applying special treatment to etc.. must Badges admitting Non-Mem

The above, Sir, was all I pro- things from permission to work also poor a quality. This is the more fected by the war in Europe, the solve that problem. It is therefore posed to say, had not the budget hers to the Members' Enclosure

steamer on Sunday to permission regrettable when it is remembered on at the present juncture may taxation, we are entitled to similar ber 9.

imposition of this form of taxa-gical that on the question of debate been postponed, on Novem- Club

to park a car in Duddell Street that for many children education nalet such damage to the vital special considerations bearing in debate, laid down by Your Excel- and

Rooms at $5.00

by the rules of have to be obtained by permit at ends at the primary stage. In fact interests of the Colony that it may mind that any form of taxationency many of the previous un- for Gentlemen and $3.00

a price. Great ingenuity on for Ladies (Both including tax)

thet is evident that the Govern-not be abre for a long time to which would tend to drive capital onidal members, including my part of successive Colonial Tres-ment's expenditure on Higher regain its importance."

and industries away from this two Chinese colleagues, are debar- are obtainable through the

surers has been displayed in find-(including Secondary) Education

Colony should be avoided as far red from answering the speech of SECRETARY

ing these methods of increasing is

ONE OF BEST. FORMS the upon

per.

out of proportion to its ex-

as' possible. Revenue.

In modern countries where in-

the sonal or written application of a

penditure on Primary Education.

Honourable the Financial Official signatures. for instance-

dustrial organisation is we'l advan-

At the present stage when full Secretary made on that day, I Mcuiber. such Member to be I make this assertion, Sir, as I are estimated to produce $40,000 in

"On these grounds it is recom- ced and the population is details of the proposed Income must add a few remarks in reply responsible for all visitors intro-magine it prompted. your state the 1910-11 budget.

A charter mended

Government welt educated and the standard of Tax are not yet avalable to the to that speech. duced by him, and for Paymentment that Government did not party signed in Hongkong is taxed should assume as soon as possible living is more less uniform, Public, I would only add that In-

intend to ise the of All Chits, etc.

Official at 15 cents per $100 of the charter larger responsibilities in primary Income Tax, from the point of come Tax, being in reality not a majority to put through a money which for a big ship education and the best way of do- | view of equity and faculty, is simple Tax but a complex system The Secretary's Office. measure which the people belleved amounts to a large sum. In Loning this would be to build, as à perhaps one of the best forms of of taxation, is not a destrable read floor, Exchange Building (Tel. to be detrimental to the welfare of don charter parties require a 6a start, two or three large primary taxation. But it is noteworthy to form of taxation for this Colony. 27794), will close at 12 o'clock gift from these people to the Home

the Colony in order to provide, a stamp for each signed copy. schools in the City of Victoria. observe in the Taxation Com-i There have been many proposals possibly fall to appreciate its

SALARIES' SOALE

staff them only with fully trained mittee Report of April 5, 1939 put

brilliance as Salaries here

teachers. Inspect them properly that even in these modern coun-alternative Tiffins are

I have not been able to get an

But, if I may say so, bia' speech upm

Club House provided they are

official copy of your remarks Sir, higher than at Home--they have to and thus make them fit to serve tries incessant vigilance is neces- the necessary revenue for the war a close analysis is not convincing because it falls to dea! adequately but I believe I have correctly in-be-but house rent is not deduct-us models for schools conducted by sary to prevent evasion." In Hong-budget. I realise that some of ordered in advance from the No 1 Boy (Telephone 21928).

It would probably be surprising to schools should be tree, an innova-conditions and its peculiar com-main burden of the additional the tax, namely, its effect on the find how many families with tion which would

position of population, the task on taxation on some particular sec- not be very

Colony; and because it is derbited children to educate and provision costly since any fees charged

the part of the Administration to tions of the community but as largely to an argument as to the to make for retirement must eco- could only be small.”

carry into effect such "ncessant war measures a certain degree of absence or presence of adminis nomize in every way to get along.

vigilance" may prove to be tor-Inequality is unavoidable.

trative difficulties. midable and costly.'"

I hope that the Honourable the Continued on

Noon,

1st

obtainable at the

PUBLIC ENCLOSURE The price of Admission to the Public Enclosure is $1.00 including Tax, for all Persons, including Ladies, and is payable at.the Gate. Soldiers and Sallor's la Uniform are admitted Hall

Price:

The goodwill and co-opera- tion of the people in a matter of this kind are important if not essential to the successful carrying out of your Excellen- ey's laudable desire that Hong- kong should do its bit towards financing the War.

Government.

áre

admittedly

that the

Or

before the

methods

Government, as

for raising

NOT CONVINCING *.

No one who has listened to or the Financial Secretary's speech Of November 9 could

debating effort.

terpreted them in my own words. able from income for tax purposes.j private enterprises. These new Kong with its peculiar economic these proposals would place the with the fundamental objection to

CHAMBER'S DECISION

As you are aware Sir, the Gen- eral Committee of the Chamber of after discussion and consideration Commerce held a meeting and they decided unanimously against Income Tax.

They recommended other alter-

FAR FROM SATISFACTORY The imposition of an Income

Some of the schools. conducted Tax would mean in many cases

by private enterprises, I must say. an adjustment of salaries fall-

are

Ane instrutions ing on the employer, who would

but the natives which had also been care-

also pay tax on his business

general conditions of many others; fully considered, and gave their opinion that the proposal to raise

profits and still have to com-

are far from satisfactory. The Com- pete with merchants in other

munity are predominantly Chines:,; three million dollars for local de- fence and seven million dollars as

ports for the trade of China. and as tax-payers they have the C. B. BROV'N,

a grant for War purposes was too

One objection, I believe, to the right to expect that Government Secretary high, as it would be detrimental to alternative taxes proposed by the should assume full responsibilities Hong Kong, 13th Nov., 1939.

the welfare of the Colony if such a Chamber of Commerce and in the primary education of their large sum was taken out of the Co- Chinese Community is that they children. I submit that it is now 819 lony, giving no return.

do not get at unlimited partner-the general accepted policy of all

By Order,

End PAIN in STOMACH

No

1

the

The Chinese Chamber of Com-ships and salaried employers in modern nations to provide at least merce hold similar views which cluding Government Servants, but the primary education necessary have been expressed by my Unoffi-12 this cannot be accomplished by for every citizen as a common cial colleagues and inquiries made taxation I believe a request for benefs and to make it free to ad from merchants, Bankers and peo-voluntary contributious would meet the recipients. ple in many walks of life make it with an immediate response from clear that public opinion is almost entirely against Income Tax.

Indications are not lacking that the Unofficial members of this Council are solidly against Income Tax but I believe they will be as solidly in favour of raising a War contribution by other means.

1920 "for

the

many who would contribute accord- of the Board of Education. It was This leads me to a consideration ing to their means. I Armly be- lieve there is no "unwillingness to

established in pay towards the cost of the War, purpose of assisting the Director An important objection to In-of Education in matters pertaining come Tax is that Home Govern-to

the development ..and ment will have to refund such a improvement of education In large proportion of the total col- the Colony", and has since lection that the net contribution then remained as a purely advisory of the United Kingdom may be body. It is an important "body, and I greatly reduced, and to get that feel that it is time that the con-: The Committee of the Chamber everyone will suffer a big distur-stitution of the Board should be of Commerce proposed other taxes bance in paying and reclaiming reviewed and its function extend- 10 seconds! to produce about $8,200,000, to cover and the net result may not be ed. A desirable feature of any new

Relief

17

matter how severe your stomach trouble, Bisurated Magnesia will always give you quick relief by removing the cause. Try it now! Don't suffer another day.

BISMAG

*Bisurated Magnesia costs very little, from any good chemist or drug store, but always see the oval BISMAG sign on the package it is your guarantee of quickest stomach relief.

BISURATED MAGNESIA

quickest stomach relief

An AR.P. class will be held at the Club Lusitano on Mondays & Fridays, commencing on Nov. 17, at 6 pm. Mr. E. F. Buttress will be the lecturer. Intending students are kindly asked to note the cor- rect time of 'commencement.

OTHER TAXES .

defence and a contribution to the worth it.

VEXED QUESTION

Home Government. These taxes

change would be the institution of several select committees, on may not be free from criticism bu: they deserve careful examination

The Hon. Mr. Caine deals with similar lines as the Urban Couneli as they have the great advantage the vexed question of evasion of for the purpose of dealing with of costing practically nothing to

Income Tax by stating that taxes various educational activities such collect. Government may suggest

on tobacco and liquor, and stamp as registration of private schools, other alternatives which will satis-

duties and charges for wireless awarding of Government scholar- ty the community and for these licences are not 100 per cent. effec-ships and recommendations reasons. Str, I would urge that the tive but nobody suggests they grants to alded schools. terms of reference of the Taxation should be abolished on that LACK OF A. R. P. SHELTERS

Committee now sitting be broad- ened to include the examination of alternatives.

4

The very able speech of the Hon. Financial Secretary In- pressed me as one of no com- promise. Nothing but income Tax will do, all arguments against it are torn to shreds, the business community, Bank- ers, investors, manufacturers, etc. should swallow the dis- tasteful draught and believe It to be less harmful than ALY other nostrum which they might prefer to try.

account.

af

In the matter of expenditure

If Income Tax should prove to be 50 per cent. Ineffective would he under Air Raid Precaution I wish propose to discontinue it after' an to draw the attention of Govern- expensive department had been set ment to the total lack of prov. up to collect it?

sion for shelters for civilians who

So many objections have been may be out in the open in time of made to Income Tax that I need emergency. I realise the peculiar not say more than that the Honformations of this Colony that Financial Secretary seems to be make It almost impossible to ploughing a very lonely furrow. A perusal of all that has been said venture to think that it may be provide shelter for everyone, but I in this debate leaves one with the possible at a small cost to build a same impression 25 the proud! Mother whose son had joined the shelters or in the alternative to number of small underground Army. She turned out to see his Regiment on the march and was strengthen some of the public. We British are credited with surprised to and that they were all buildings in the City to provide being experts in compromise and out of step with her Peter.

for such an eventuality.

I

the middle course but there is no Hon. Mr. Tse-fong sald;- I will now come to the con- confirmation of this in the Hon. Financial Secretary's speech. He paratively new member of this position of Income Tax. I have Your Excellency, as I am a com-sideration of the proposed im-

set out to confound the opposition Council I have a few observations had the opportunity of studying to his pet tax and may have done to make.

the speech made by the Honour- so entirely to his own satisfaction

I agree with the Government's able the Financial Secretary m

can see

but the people who must pay the polley that there should be as November 9, but I fiddler apparently still dislike the little disturbance as possible with no reason to change my opinion

tune.

→ COMPARISON OF TAXATION

ķ

Talal therefore confine to what I intended to say on that day

the Colony's current activities and development schemes. and I

the end.

In comparing taxation in Hong- venture to think that the prov and reter to h's speech again at kong with other places one has Mons made for public works ex- only to examine the high cost of traordinary are by no means ex- observations on this very impor

Before I offer my personať Į living here to find that one of the travagant. All works provided for tant matter I wish to say that contributory factors is the high in the estimates for the develop the Chinese Community, whose price of land.

Government is the ground land- ment of health and education, that views my Chinese colleagues and lord and the high price it obtains would confer common benent to have the honour to represent, for land has to be paid ulti-the community, should be proceed-are not unconscious of the duty mately by the tenants. Land sales ed with without any avoidable of all citizens in this Colony in have been an important item of delay. I earnestly hope that in the connection with the present war Revenue. Rents which are based event of Government being called in Europe. They realise that the on a return on the investment in upon to cut down expenditure in Colony should do its utmost to lend, and buildings are also the order to balance the Budget, th's make contributions to the war

HB.