༄། ། ། ། །།
PUBLIC RECORD OFFICE
19
Reference :-
C.O-885
1PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
10
thought, to 32,8501. in the first instance, a sum Papers. April 1848, p. sufficient to enable the Government to abolish the remainder of the import duty on rice and paddy, which final measure would involve a loss of about 35,0001.
Thus by Sir E. Tennent's plan about 135,0001. of old taxes was to be in all taken off, and about 115,000l. of new taxes in all imposed, and the net result would have been about 5,000. in favour of revenue, owing to the reduction of 24,000l. which Sir E. Tennent proposed to make
in the Colonial expenditure, at the expense Great Britain.
of
This plan of Sir E. Tennent's when referred Vide Report.
104.
by Lord Grey to the Committee which sat in the Papers. April 1848, p. 7 to 38.
Colonial Office, did not meet with their entire assent. They drew up an amended plan of their
own to the following effect :-
They set out by laying down upon data drawn from the returns of six years ending with 1845, and from the local estimates for 1846 and 1847, besides, that there was an average habitual surplus of 27,8791. a-year of revenue over expenditure; and upon data drawn from the quarterly state- ments sent home by the local reasurer up to March 31, 1846, that there was an accumulated
cash balance at that date of 207,8781. They then Papers. April 1848, p. 7.
proposed upon this foundation, that existing taxes
should be remitted to the amount of 61,144, as
stated below.;* but new taxes contemporaneously
imposed to the amount of 35,500l. only, as stated Papers. April 1848, p. 32.
below; the difference of 25,6441., being assumed
£
•
Monopoly of Chanks
226
Export duty on Cinnamon
25,000
All other export duties
10,000
Loaded Cart Tax..
150
Reduction of import duty on Rice and
Paddy, from 7d. and 3d. to 4. and 2d. perbushel
25,768
61,144
Total new
revenue to replace revenue
remitted
35,500
Difference
25,644
+ Arms Tax
7,500
Land Tax (Cinnamon)
11,000
Ditto (Coffee)
10,000
Increased import of Rice at reduced
rate of duty.
7,000
Total new revenue
£35,500
Papers. April 1848, pp. 11 and 12.
11
capable of being made good for some years out of the balance in hand, pending the extension of the land-tax from cinnamon and coffee estates (which lands would be immediately accessible), to all the other cultivated lands in the island, which would take a longer time to assess. The extension in question, it was thought would, together with the beneficial effects of reducing the import-duty on rice, and the other measures restore the balance of the finances before the cash accumulation was exhausted.
The committee thought that Sir E. Tennent had overstated the depression of the cinnamon trade. The exports of cinnamon from Ceylon had not varied much in number of pounds for several
years past. But they left it to be under- stood that an immediate reduction from 1s. to about 4d. should properly take place; and they desired that this 4d. should be commuted into an equivalent land-tax, with all practicable dispatch. They agreed with Sir E Tennent th the export
duties should be abolished as unsound
in principle, but they would not abolish them, till they had first secured an equivalent in the shape of a land-tax. This rule t ey would apply to cinnamon and coffee both. The other export duties would be abolished, as of no importance: the cinnamon export duty as being heavy upon the trade might be reduced, before being commuted to a land-tax; in case this operation should prove tedious. The coffee duty the committee thought could not be esteemed heavy at its existing rate of 24 per cent ad valorem, and should therefore stand as it was till it could be converted into an
Papers. April 1848, pp. 9 and 10. equivalent land-tax. The committee attached great importance to the reduction of the import duty on rice, as a tax enchancing the cost of the Papers. April 1848, pp. 14 to 18. chief necessary of life in the colony. The same principle led them to oppose the increase of the duty on salt, suggested by Sir E. Tennent. They would reduce the salt duty when the finances would bear it. But rice they thought had the first claim.
Papers. April 1848, p. 13.
The Committee objected to the elevation of any of the import duties. They thought the foreign duties should be lowered to the existing British rate, and not the British and foreign made to meet in the way suggested by Sir E. Tennent at