Feb. 8.
The announcement made by Mr. Godfrey Phillips, Secretary and Commissioner~ General of the Shanghai Municipal Council, that it has been decided to appoint a com= mittee to investigate the question of unequal taxation will be welcomed by those who have all along felt that this was a matter which required serious attention. The Council has acted wisely in selecting for the personnel of this committee men who may be regarded as expert in the matter, and it is expected that they will be able to produce a report for consideration at the annual meeting of ratepayers. That they will have to work swiftly to finish their labours in time goes without saying, and the result of their work will be awaited with considerable interest. It needs to be emphasized for the benefit of those who. happen to have different ideas as to who should or should not be appointed to the committee, that the fullest opportunity. will accorded to all who wish to lay their views en the subject of unequal taxation before the committee, for what is desired by all parties is that the investigation shall be 5 complete as possible, ensuring that the decisions of the committee shall be based on all the information available, Mr. Phillips's perfectly frank talk to the local Press dealt with other points beside the question of this committee, and the remarks he made deserve the earnest consideration of the ratepayers, 'Thus, on the suggested extension of the scope of taxation, he stated that for years past the Council had been advised by' its lawyers that its taxing powers tare limited to the collection of wharfage dues, Nicene fees, land fax; and rates on buildings. It has generally been assumed that this ad: vice is correct, and close inspection of the Land Reyulations supports that view. That in the main is due to the fact that when those Regulations were drawn up there were few who could foresee the tremendous: development of the place, and certainly none who would be expected to anticipate and provide against the emergency with which this city is now faced. Although axiomatic, it is nevertheless necessary to remember that no community can hope to exist upon taxation unenforceable in the courts, and taxes which cannot be justified by the Land Regulations will most. certainly. not commend themselves to the favourable con~ sideration of the judges in Shanghai. That contention answers the argument that revenue might be obtained by a tax on income from business profits. If the terms of the Land Regulations do not, permit of this being done, no move in this direction is possible without amendment of the regulations, and that in existing circumstances must be, cepted as out of the question, On the' subject of taxing Stock Exchange transactions there is a grave danger that those favouring this scheme have been dazzled by the figures indicating the large turnovers which have prevailed for some time past. That is not normal, and there is no justification for believing that any steady income from year {o year could be derived therefrom. "It is a fuet that in times slump—and the last one is nat even now so far back—such taxation would be productive'
Text read from the printed page and cleaned; old type leaves the occasional error.