LIKIN

“Likin stations have been established at places where railway communication is available.  This has done a good deal of harm to transportation and the railway traffic.  Lately a proposal has been made in certain quarters that likin stations along the railways be abolished; and the measure has been adopted by the Peking-Tientsin and Tientsin-Pukow Railways at certain places.  When the towns and cities throughout the country are connected by railways, there will be no place for likin stations.  With the increase in the number of treaty ports, the “likin zone” will be gradually diminished.  Thencefrom the proceeds from likin will be decreased year by year.

“Owing to the collection of likin the development of both home and foreign trade has been arrested and the people are working under great disadvantages.  Hence in order to develop foreign and home trade, the Government must do away with likin, which will bring back business prosperity, and in time the same will enable the Government to obtain new sources of revenues.

“From the above-mentioned considerations, the Government can hardly develop and encourage trade without the abolition of likin.  By treaty with Great Britain, America and Japan, the Government can increase the rate of Customs tariff to cover losses due to the abolition of likin.  The question under consideration is not a new one.  But the cause which has prevented the Government from reaching a prompt decision upon this question is the fear that, after the abolition of likin, the proceeds from the increased Customs tariff would not be sufficient to cover the shortage caused by the abolition of likin.

COST OF ABOLITION OF LIKIN

But such a fear should disappear when the Authorities remember the following facts:—­

(a) The loss as the result of the abolition of likin:  $38,900,000.

(b) The loss as the result of the abolition of a part of duty collected by the native Customs houses:  $7,300,000.

(c) Annual proceeds from different kinds of principal and miscellaneous taxes which shall be done away with the abolition of likin $11,800,000.

The above figures are determined by comparing the actual amount of proceeds collected by the Government in the 3rd and 4th years of the Republic with the estimated amount in the Budget of the fifth year.  The total amount of loss caused by the abolition of likin will be $58,000,000.

INCREASE OF CUSTOMS TARIFF

The amount of increase in the Customs tariff which the Government expects to collect is as follows:—­

(a) The increase in import duties $29,000,000.

(b) The increase in export duties Tls. 6,560,000.