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assessment of net instead of gross receipts are
based on sound principles, the War Office is
prepared to examine them.
The Treasury agree generally with this
conclusion of the War Office that the proposed
new system is not only not justified on its own
merits, but is likely to prove unfavourable to this
country. In addition to the arguments of the War
Office they add :-
(1) that the recent gradual fall in the
price of silver may possibly continue
and that the property valuations may not
be adjusted thereto; while there may be
a recovery in the price of silver, the
fall that has already occurred is in any
case likely to be much more fully reflected
in the yield of revenue generally than in
rateable value.
(2)
(3)
that they suspect that the revenue of
the Colony for the years 1925 and onwards,
.was so much affected by the boycott and
the disturbances in China generally, that
the comparison between actual yield on the
present basis of assessment and that under
the proposed new system for these years is
of very doubtful value.
the present system has stood the test of
time and has not worked unfairly. The
proposed new system would be likely to
cause
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