PUBLIC RECORD OFFICE
Reference:
C.O. 882
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
PUBLIC RECORD OFFICE, LONDON
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For convenience of reference this fixed sum payable annually is termed in the Ordinance an "annual commutation," the fixed sum payable in crop producing years only is termed ". crop commutation," and the sum varying with the estimated value of
crop is termed "grain duty.”
the
Annual commutation and crop commutation are exclusively applicable to paddy grown on wet lands; grain duty exclusively applicable to what is called "dry grain," L.e. to taxable produce other than paddy, and to "hill paddy."
It was found, after much inquiry and consideration, that to adopt any system. of compounding the tax in the case of these dry grains would be impracticable. The cultivation of this kind of produce is, in most cases, extremely irregular and discursive. The grain is not sown like paddy in well defined fields, but in sporadic and ever changing "China Cultivation," intervals of many years patches; and in the case of what is called elapse between the sowings of the same patch of laud.
To the paddy cultivator the option is in every case given to elect whether his field shall become subject to annual commutation or crop commutation.
But, as it is considered that annual commutation will be more likely to promote agriculture, as well as far more easily collected, than crop commutation, certain advantages are held out to the cultivator to induce him to adopt the former instead of the latter.
The assessment of both kinds of commutation is to be made by Commissioners to be appointed by the Governor.
When the cultivator has elected to pay the annual commutation, the Commissioners will at first endeavour to come to an agreement with the landowner as to the amount to become payable. It may fairly be anticipated that in the majority of cases, if moderate terms are offered, the commutation will be effected by agreement, as is now the case where commutation adopted; and, as has been already pointed out, in the Central Province Commutation, effected by agreement between the landowner and the Government Agent, is almost universal.
If the Commissioner and the owner of the field cannot agree, the Commissioner will ascertain, with as much accuracy as practicable, the average annual yield of the field during the 14 years preceding the time of inquiry, and the value in money of the Government share of such average annual yield, after a deduction of 10 per cent., will be the annual commutation payable in respect of such field. The Commissioner has, however, power to take into consideration any exceptional circumstances, which may reasonably be expected to reduce or increase the average yield.
It might be supposed that it would be very difficult to ascertain the average annual yield of a given field for the last 14 years. But the evidence which has been obtained from public officers and others on the subject, shows that a fair approximation to correctness can be obtained without serious difficulty.
If the paddy grower elects crop commutation, the Commissioner will ascertain, with as much accuracy as possible, the average annual yield of the field in those years in which the land has produced a crop during the 14 years preceding the inquiry, and the value in money of the Government share of such average annual yield will be the crop commutation payable in respect of the field, but such commutation will be payable in those years only in which the field produces a crop.
It will thus be seen that the amount payable by way of crop commutation, which is calculated upon an average of the crop producing years only out of the 14 years prior to the settlement, will, whenever it is paid, be larger than the amount of annual com- mutation, which is based upon the average yield of all the 14 years; but then crop. commutation is payable in crop producing years only, whereas annual commutation is payable every year whether the field produces a crop or not. If the calculation upon which each kind of commutation is based, were perfectly correct, the same aggregate amount of commutation would be paid during the next seven years, whichever system was adopted, and the annual commuter would not be in a better position than the crop But the Ordinance gives two advantages to the former over the latter. The one is the deduction of 10 per cent., which is allowed in the case of annual commutation; the other is that for the purpose of determining the annual commutation; the average price of paddy per bushel pievailing in the district during the 14 years preceding the inquiry is taken to be the value of paddy per bushel; whereas for the purpose of fixing the crop commutation the average price during the seven years preceding the inquiry is taken to be the value of paddy; and the average price of paddy has been much higher during the last seven years than during the previous seven
colomuter.
years.
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Any cultivator, who is dissatisfied with the assessment of the Commissioner, may appeal therefrom to the Government Agent of the province, and a further appeal lies from the decision of the Government Agent to the Governor and Executive Council.
The Ordinance provides for a proper register of the lands assessed, containing the name of each field and of the reputed owner, the proportion of the produce due to Government by way of grain-tax and the amount of annual-commutation or crop.com. mutation, as the case may be, payable in respect of each such field. This register, subject to certain provisions for the correction of errors, is made conclusive evidence of the facts recorded.
Section 13 provides for the commutation of the duty on dry grain. It has already been pointed out that it is found impossible to introduce any satisfactory mode of com- pounding this duty. The section simply provides that within 15 days from the sowing it shall be the duty of the owner or cultivator to give notice thereof and of the extent sown to the Government Agent, upon which the Government Agent is to direct some headman of rank not below the second class to assess the probable value of the crop when cut, and the Government share is then to be payable in money. An appeal lies from the assessment of the headman to the Government Agent. If the cultivator fails to give notice of sowing he will be liable to a fine and will not have any right of appeal against the headman's assessment. Section 15 contains an important provision which it is hoped will encourage persons to bring new fields into rice cultivation and restore to tillage and productiveness old fields, the cultivation of which has been abandoned during the last 14 years or longer. Such fields, if brought into cultivation after the Ordinance comes into operation, will be exempt from grain-tax altogether until the next grain-tax revision.
Section 26 provides for the revision of the annual-commutation and crop-commutation at the expiration of seven years from the same first becoming payable. The remainder of the Ordinance does not call for any special remark. It contains the necessary pro- visions for the due collection of the commutation and the carrying out the purposes of the measure generally.
The non-payment of commutation ceases to be an offence (as it is now), but the amount due is made a charge on the land which produced the crop in respect of which it is payable. The Ordinance has one advantage which it is believed will prevent any serious difficulty in its working. It contains nothing altogether strange and unfamiliar to the people, commutation by agreement being already well understood and largely adopted. The only objection that has been offered by the people to compulsory com- mutation is their dislike to have to pay when they have no crop. But under the present Ordinance they can, if they please, choose that form of commutation which renders them liable to pay in crop-producing years only. Where the supply of water is constant and the prospects of annual crops good, annual-commutation will in most cases bé adopted; where crops, from the prevalence in the district either of droughts or floods, are precarious crop-commutation will doubtless be preferred.
Again, the machinery by which the measure is to be worked is not unfamiliar. The operations of the Temple Land Commissioners and the Service Tenures Commissioners, the latter especially, are precedents for the operations of the Grain Commissioners to be appointed under this Ordinance; and the valuation of crops by paid appraisers for the purposes of the renting system is familiar to all. Experience may bring to light defects which, as the measure will be introduced by degrees only, can be hereafter remedied; but the general opinion, so far as it could be ascertained, of those most com- petent to form an opinion on the subject is that this Ordinance will prove beneficial to the people and conducive to the encouragement of rice cultivation.
(Signed) RICHARD CAYLEY, Colombo, 9th January 1879.
Queen's Advocate,
Enclosure 3 of Despatch No. 32, of 27 January, 1879.
QUEEN'S ADVOCATE's Speech on moving the FIRST READING of the GRAIN BILL. THE GRAIN TAXES ORDINANCE.
The Hon. the Queen's Advocate moved the first reading of the following Bill: "An Ordinance to make better provision for the due collection of the tax, duty or share due to the Government upon grain grown in the Island." He said: Your Excellency, in your opening address, alluded to this Bill as being the most important to
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