PUBLIC RECORD OFFICE
Reference:
mumiminim
C.O. 882
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
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this measure was to deal fairly and even liberally with the people. It is to be hoped that the measure will be accepted by the people in the same spirit in which it is offered, and that they will co-operate with the officers of the Government in commuting by agreement as they already do in so many parts of the island. That, of course, will be by far the most satisfactory way in which the change can be effected. Hon. members will see that this change cannot be introduced without some, perhaps a considerable diminution of revenue, but I firmly believe myself that the greater encouragement this measure will give to agriculture will, in future years remedy this, and that the revenue will be more than recouped by the greater quantity of land brought under cultivation. I need hardly express my confidence that hon. members will co-operate with the Government in their endeavours to pass a really satisfactory measure. I shall propose to refer the Bill to a strong sub-committee, who will consider the subject very fully. I am free to confess that in its details this Bill may be susceptible of many improvements. The Government will look to the discriminating support of hon. members to carry through the measure. For my part, speaking as a member of this Council, I would rather have my name associated with a measure that should place the question of our grain taxes upon a really satisfactory footing-upon a footing acceptable to the people and conducive to the interests of agriculture-than with any other measure that could be laid before this Council.
The Hon. the Colonial Secretary seconded the motion for the first reading of the Bill.
The Bill was then read a first time.
Enclosure 4 of Despatch No. 32 of 27th January 1879.
XXXIV.
GRAIN TAX BILL
REPORT of a SUB-COMMITTEE of the LEGISLATIVE COUNCIL appointed to report upon the Bill, "An Ordinance to make better Provision for the due Collection of the Tax, Duty, or Share due to Government upon Grain grown in this Island."
EXTRACT from the MINUTES of a Meeting of the LEGISLATIVE COUNCIL held at the Council Chamber on Wednesday, the 6th November 1878.
Resolved that the following gentlemen be appointed a sub-committee to report upon the Bill-
"An Ordinance to make better provision for the due collection of the tax, duty, or share due to Government upon grain grown in this island.”
The Honourable J. DOUGLAS, C.M.G., Colonial Secretary.
The Honourable RICHARD CAYLEY, Queen's Advocate,
The Honourable F. R. SAUNDERS, Acting Government Agent, Western Province, The Honourable W. D. WRIGHT, Principal Collector of Customs.
The Honourable Sir M. CoOMARA SWAMY,
The Honourable J. VANLANGENBERG,
The Honourable J. P. OBEYESEKARA,
The Honourable G. B. LEECHMAN,
REPORT.
Un-official Members.
THE Sub-Committee have the honour to report as follows:-
1. They have examined orally several witnesses, both Native and European, and have received reports from all the Government Agents and from others on the subject of this
Bill.
2. They are gratified in being able to report that, in the opinion of the great majority of the persons to whom the Bill has been referred, the main features of the measure, namely, the substitution of a money payment for a payment in kind of the grain-tax, and the consequent abolition of the renting system, will be found both practicable and, if the assessment is moderate, generally acceptable to the people. The Sub-Committee
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have accordingly framed their amendments with the view of making the assessment as moderate and easy for the cultivator as possible.
3. The Bill, in the form in which it has been referred to the Sub-Committee, provides for two kinds of commutation of the grain-tax. It must either assume the form of a fixed money payment to be made annually, whether the field in respect of which it is due, yields a crop or not, or the form of an equally fixed (though larger) payment to be made in those years only in which the field produces
a crop.
4. The question of giving to the cultivator in all cases the option of electing whether he will be assessed for this annual commutation or for a commutation payable in crop- producing years only, has received the careful attention of the Sub-Committee, and they have obtained a considerable body of evidence bearing on the point. The views which have been expressed on this question by many witnesses of experience and knowledge, have induced the Sub-Committee to recommend that this option should in all cases be conceded, for, though several members of the Sub-Committee are strongly of opinion that in the case of fertile fields, which produce (say) an average of ten crops in fourteen years, assessment by way of annual commutation is more advantageous both for the cultivator and the Government than the other method; yet their desire to make the Bill as acceptable as possible to the people induces them to defer their own opinion to what appears to be the general wish on the subject. They hope, however, that the superior advantages which are offered by the Bill to the annual commuter, will, in the case of fertile fields, induce most cultivators to elect this mode of assessment.
5. The Sub-Committee are satisfied from the inquiries made by them that the two systems of commutation provided by the Bill as referred to them are inapplicable to what is commonly called " dry grain," i.e. to el-ví (or hill paddy), and all the kinds of taxable produce which do not come under the denomination of paddy. They have accordingly provided (§ 13) a special mode of assessing the tax payable on these kinds of produce. The payment is to be in money and not in kind, and the amount is to be assessed and payable every year in which the land yields a crop.
6. Some of the members of the Sub-Committee are of opinion that the tax or duty on "dry grain" should be abolished. The other members, having regard to the fact that the greater part of the duty on dry grain " is paid by the Northern Province, and that the revenue derived from this Province does not defray the expenses of its administration, while they refrain from expressing any approval of this tax on principle, still think it should not be swept away until some other more satisfactory impost can be substituted for it.
7. The concession of the right of election in all cases of paddy cultivation between the adoption of a commutation payable annually and one payable in crop-producing years only, and the introduction of a special provision for the assessment and payment of the tax on "dry grain " have necessitated a number of verbal alterations throughout the Bill, which will be found in the amended draft, but which it is unnecessary to particularise.
crop-
8. These amendments have also rendered it necessary to alter in some respects the terminology of the Bill. In the amended Bill the fixed commutation which is payable every year, whether the land produces a crop or not, is termed "annual commutation"; the fixed commutation, which is payable in crop-producing years only, is termed “ commutation" ; the commutation, which varies with the crop, and is payable in crop- producing years only, is termed "grain duty." The last is only applicable to "dry grain.”
9. The Sub-Committee have carefully considered the question as to the proper mode of fixing the price of paddy, for the purpose of determining the amount of annual- commutation and crop-commutation payable. For the former they have taken the average price of paddy per bushel prevailing in the district during the 14 years preceding the inquiry; for the latter the average price of paddy per bushel prevailing in the district during the seven years preceding the inquiry. As the average price of paddy has been much higher during the last seven years than during the preceding seven years a very considerable additional advantage will be thus given to the annual- commuter over the crop-commuter.
10. The Sub-Committee have given much attention to the important question of fixing the time of year at which the annual-commutation should be made payable. After taking much evidence on the point they have come to the conclusion that it will not be desirable to fix any one particular time for all districts; and they accordingly recommend that the provision which makes the 31st day of March the day of payment C 4