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DRAIT THINGRAM TO
GOVERNOR,
Your telegram No, 1651.
Revision of War Revenue Ordinanco..
You will wish to know that draft Income
Tax Ordinance which Padney is taking back with
him after consultation with Board of Indland
Revenue has my general approval in principle.
Pudney will fully explain ways in which draft
Ordinance differs from 1941 Ordinance.
"rincipal advantage over 1941 Ordinance is
that it permits institution of a standard rate
and gives encouragement
taxpayers to soak
personal assessment on basis of whole income,
2. Question of rates of tax was no
discussed in detail with Pudney exoept ih
general terms. I wish, however, to emphasise
the importance I attach to putting the
standard rute
high a level as you
consider practicable. In this connection
Ordinance as drafted by Pudney will not pernit
the imposition of a surtax on higher incoMES
and this is an additional reason for making
standard rate as high as possible with
individuals in a lower income groups being
given larger allowances where parsorm1
assessment basis is chosen. I shall be glad
to learn in due course what rates you actually
propose.
3. I would also emphasise that I consider
Ordinance
prepared by Pudrey to be suitable
only as an interin mamare pending the
introduction of a normal Income Tax.
Consider that introduction of increased
taxation should not be deferred beyond
ist April
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