Sessional_Paper_1897 — Page 41

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It gives me equal pleasure to inform you that, notwithstanding the reduction of the Light Dues which will involve a decrease of some $70,000 in the receipts from this source, and the unprecedentedly low value of the dollar, taken at 1s. 9d., I do not propose to levy any additional taxation. The deficiency, if any, will be fully met by large receipts from Land Sales during the coming year, as well as by the increased value of the Opium Farm. The estimate in the first case is based upon the fact that the Government has a very valuable asset in Taipingshan, a large portion of which will almost certainly be recovered in 1898, as well as in valuable sites in other much-sought-after localities.

I would now invite your attention to the following points.

The Revenue has been cautiously estimated, and is expected to amount to $2,694,868 as against $2,609,878 collected in 1896, or an estimated increase of $84,990 on the total receipts for the latter year. The most noteworthy increases (in round numbers) are as

follows:

Opium Monopoly,

Assessed Taxes,

Stamps,

.$71,680

57,700

11,500

Medical Treatment in the Civil Hospital, 3,400 Official Signatures,..

2,500

Queen's College, Fees from Scholars, 3,500

--

Postage,

Leased Lands,

Water Account,

14,700-

17,700

14,000

There are also minor increases under other headings, and two new items, viz. :-

Certificates to Chinese entering America, $20,000

Interest,

3,000

The increase under the heading "Assessed Taxes" is expected in view of the prospective re-valuation of all rateable tenements which will come into force from the 1st July next, and the number of new buildings nearing completion. The estimated increase in the receipts on Water Account is due to the additional revenue derived from the establishment of the new Waterworks in Kowloon and elsewhere.

In 1896 there were no receipts on account of " Interest," the Government balances being exhausted by the expenditure incurred in connection with the resumption of Taipingshan, and in dealing with the Plague Epidemic during that year.

The principal items, which will probably show a falling off as compared with the receipts for 1896, are as follows:

Light Dues,

$72,000

Fines,

22,500

Junk Licences,

4,600

Fees of Court...................

2,000

Miscellaneous Receipts,.......

5,000

Subsidiary Coins, Land Sales,...

10,000

15,800

in addition to other minor decreases.

The Government intends to adopt a bold policy in regard to the supply of subsidiary coins, and it is probable that, if the demand for them continues to be as brisk as it is at present, the result may be more gratifying than the estimated revenue from this source would lead me to conjecture. The Government is much indebted to the Chief Manager of the Hongkong and Shanghai Bank for his assistance and advice in connection with this subject.

As regards Land Sales, I should not be surprised if, for reasons which I have already stated, instead of falling short of the somewhat exceptional figures for 1896, the revenue from this source for 1898 actually exceeded the receipts for the former year.