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Chapter IV.
Interpretation of Terms of Reference.
1. We agreed that the terms of reference directed our attention to a con- sideration of the nature of additional taxation if circumstances should arise in which additional revenue were requisite. The responsibility for deciding when such circumstances were present rested upon Government and the legislature. We decided, however, that it was within our scope to make recommendations regard- ing the equitable distribution of the incidence of existing taxation as well as to suggest new methods of increasing the general yield, and that it would not be irrelevant for us to express our firm conviction that a strict attention to economy in administration should precede any attempt to expand the revenue of the Colony by means of additional taxation.
2. In this connection we wish to emphasise the high cost of Government provided education in the Colony as compared with the revenue derived from school-fees, etc. There exists a marked discrepancy between the cost of certain Government schools and that of corresponding institutions maintained by private enterprise.
3. We were impressed also with the magnitude of Government's commitments. with regard to the pensions payable to Government servants. We realise, however, that any economy in this direction would involve a radical departure from previous. practice requiring the special approval of the Secretary of State for the Colonies.
Chapter V.
Present Sources of Revenue.
1. The following is a list of the main classes of revenue to be met with in the modern world.
Fees and charges of a commercial character, including Post Office and. Railway receipts, Water charges, etc.
(i)
(ii)
Land sales and rents.
(iii) Property tax, including land tax and rates on urban property.
(iv) Customs duties.
(v) Excise duties and similar revenue.
(vi) Internal Revenue, including licences, stamp duties, sales and turnover
taxes.
(vii) Poll tax.
(viii) Death duties.
(ix) Income tax.
(x)
Miscellaneous revenue, including royalties from public utilities.
2. The appendix is a summary of revenue as estimated for 1939 classified approximately under the above heads. Broadly, taxation in the strict sense is at present confined to duties on imports, rates, estate and stamp duties, betting and entertainment duties and some licences. Most of the licences and fees, rents, land sales and the commercial receipts (Railway, Water and Post Office) must be regarded as outside the scope of increase of the kind envisaged in our terms of reference.