PUBLIC RECORD OFFICE
Reference:
C.O. 882
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
t
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Others suggest the market value of paddy as the money-rate, and no remission in case of failure, the primary idea in commutation being the fixed payment, and that the good harvests must pay for the bad.
20. What inducements, beyond such as now exist, can you suggest to make commu. tation more acceptable to the people than it is at present, without materially diminishing the revenue?
(1.) Low rate of assessment.
(2.) Remission in case of failure of crop.
(3.) Bring the whole country under the Irrigation Ordinance.
21. Give the highest, lowest, and average rate per acre levied by the Government on paddy land in your province under the present commutation. Or, if there is now no commutation, under the last commmutation; and, in this latter case, give the date when the commutation expired.
Highest.
Average.
Lowest.
Date when last Commutation
ceased.
1875
1841
Not stated.
Rs. Cts.
Re. Cla.
Rs. Cts.
#
Kegalla district
6 0
2 67
0 67
Western Province
Kalutara
1 32
Ratuapura,,
2 66
Central
6 66
3 11
2 76
Southern
1 18
1 8
1
0
J
Northern Eastern
7 20
2 0
0 45
3 0
1 50
0 50
North Central
1 30
1 50 0.95
1861
0 46
1872
17
North-Western Province
1847
22. Would it, in your opinion, be practicable to make commutation compulsory, upon
the expressed desire of the majority of landowners within a given area?
Only if there was a very decided majority, and this majority cultivating the greater part of the land; otherwise those who had regular crops might combine to the prejudice of those who are worse off.
23. Do you think it advisable or practicable to substitute a general land tax for the
present taxes on home-grown and imported grain?
If so, you are requested to specify the amount which you would propose to assess coffee plantations and gardens, cinnamon, tobacco, paddy fields, and other plots of cultivated land, also uncultivated lands in private hands, and the annual amount which could thereby be fairly realized.
Almost universally condemned for the following reasons:—
(1.) Want of survey of the lands.
(2.) It would involve a change in the mode of taxation, which is disliked by natives. (3.) It would be very hard on the poor owners of gardens which yield little or
nothing.
(4.) The present system is the only one by which the bulk of the population is taxed. The land tax, however, is supported by Sir Charles Layard and Colonel Fyers; the former advocating an uniform tax for all lands through- out the Island; the latter would assess lands according to their value.
C. M. LUSHINGTON,
Secretary to the Grain Tax Commission.
71
No. 9.
THE RIGHT HONOURABLE SIR M. E. HICKS BEACH, BART., to GOVERNOR SIR J. R. LONGDEN, K.C.M.G. (No. 147.)
Downing Street, July 9, 1878.
SIR,
I HAVE read and considered your Despatch No. 86, of the 18th December, and the report of the Grain Tax Commission which accompanied it, and I have much pleasure in expressing my sense of the ability with which the Commissioners have drawn up their report, and the care which they have evidently bestowed upon it.
2. The subject now brought before me involves two distinct questions, (1) as regards the grain taxes themselves, (2) as regards the mode of collecting them.
3. Adverting first to the second of these two questions, I cannot avoid the conclusion that if the grain taxes be retained the present method of collection should be changed, and I see no reason to doubt the soundness of the opinion expressed in the final recapitu- lation of the Committee's Report, that "The present renting system is indefensible in principle, is open to abuse, and has actually led to abuse." Such a system should there- fore be given up without delay, and the plan of compulsory commutation should be adopted in its stead.
4. I notice that the majority of the Commissioners are in favour of abolishing entirely the tax on fine grain, and that in the opinion of the Government agent of the Northern Province, the commutation of this tax is impracticable; but although the amount of revenue derived from it is comparatively small, am not at present prepared to give my assent to its abolition, and I request that it may be further considered whether some scheme of commutation cannot be adopted in this as in the case of other grain, provided that the cost of collection does not prove so great as to render the tax unremunerative.
5. The other question, viz., whether the taxes in whatever form should be retained at all, is far more intricate, and has given rise to much greater divergence of opinion. On the whole, I concur with you in thinking that the revenue is not able to bear the con- siderable loss which would ensue from their abolition without the substitution of other taxation in their place; and though the increasing prosperity of Ceylon might appear to suggest that the colonial finances could afford to lose some portion of the amount so raised, yet in view of the large special expenditure which has been and is still being incurred, and considering the advantages which all classes, including the small cultivators, derive from the active prosecution of roads, railways, irrigation and other public works, I am satisfied that it would not be expedient at the present time to abandon so important a source of revenue.
Under these circumstances the further point arises whether the loss of revenue which the abolition of these taxes would entail, could not be inet by increasing other taxes, such as for instance the duties on wine, spirits, and tobacco.
6. 1 took advantage of the presence of Mr. Birch in this country to consult him upon this point, which does not appear to be completely dealt with in the report of the Com- missioners, and in accordance with my request he furnished me with a memorandum on the subject. That paper, a copy of which I enclose for your information, agrees with the observations contained in your despatch, and I am satisfied that no advantage would be derived from increasing the duties on wine and spirits. In considering this subject, I have observed that the home-grown tobacco of Ceylon, so far from being itself taxed, appears to be protected by import duties on foreign growth of 18. per lb. on cigars and snuff; 4d. per lb. on manufactured tobacco, and 24d. per lb. on unmanufactured tobacco. As the consumption of tobacco is a legitimate source of taxation, it is desirable that you should consider whether means cannot be devised by which the consumer of home-grown tobacco equally with the consumer of the imported article should contribute to the
revenue.
7. The only alternative to the grain taxes which the Commission appears to have thought worthy of serious consideration is that of a general land tax.
I observe that the Commissioners generally are opposed to the imposition of such a tax; and you, equally with your predecessor, appear to be strongly of opinion that it would prove an unsuccessful measure; on the other hand, I find that Sir C. Layard and Colonel Fyers are disposed to recommend the adoption of this form of tax.
• No. 8.
I 4