349
PUBLIC PECORD OFFICE
Reference →
CO.882/12
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOI TO
| PUBLIC RECORD OFFICE, LONDON
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210
their relative capacity to pay. It will correct to some extent the inequality resulting from a system of indirect taxation which covers the main necessaries of life. While as between individuals there are bound to be anomalies, the anomalies are not likely to be greater or more numerous than under any other alternative to an income-tax that could be devised. There is, for instance, no greater anomaly in differentiating between two individuals with the same amount of income by reference to the comparative value of the houses in which they reside than by reference to their comparative consump- tion of wine and tobacco. On the other hand the rates of tax proposed are so small that such anomalies as arise would be lightly borne. In the case of houses up to Rs.15,000 in value it may safely be assumed that the income of the householder will on the average be not less than half the capital value of his residence. The basis on which the assessments have been fixed is as a rule 12 times the rental value of the house, and we understand that in Mauritius as in England the usual middle class standard of house rent is about one-sixth of the tenant's total income. By the joint application of these two rates an income average is reached at the amount of one half the capital assessment of the house. This result will mean that a person with an income of Rs.2,500 per annum (approximately £190) will pay Rs.50 (approximately £3 158.), a person with an income of Rs.5,001 (approximately
£380) will
pay Rs.200 (approximately £15), and a person with an income of Rs.7,501 (approximately £570) will pay Rs.450 (approximately £33).
In the case of the higher assessments the income level of the householder tends to be much higher relatively to the capital value of his residence, and we have taken this into account in fixing the proposed scale of graduation. We realize, however, that in the exceptional case this class of householder will still escape lightly in comparison with those in the smaller assessment categories; but we feel that we have gone as far in the direction of graduating the rates of tax as is possible under the guidance of a single test of capacity to pay.
30. We propose that action should be taken immediately to introduce the necessary legislation, in order that the tax may be collected for the calendar year 1932, and that the whole proceeds of the tax may be realized before the end of the present financial year (30th June, 1932) We attach as Appendix V a draft outline of an Ordinance for giving effect to our proposal. The draft has been framed generally on the lines of the existing house tax and house rate ordinances, and we have adopted this as a convenient means of stating in a concise and detailed form the full extent of the legislative changes that will be necessary. It stands in need, no doubt, of amendment at the hands of the trained legal expert, but it may, perhaps, facilitate the practical discussion of our pro- posals to put them forward in this definite form.
211
Adjustment of General and Local Taxation.
31. As has been pointed out earlier in this chapter the system of local government in the Colony has not attained a very high stage of development. The whole of the police, educational, and public health services are still in the hands of the central govern- inent, which continues to administer a considerable part of the sanitary services and water supply services within the municipal and township areas. Partly as the result of this somewhat hap- hazard apportionment of functions, and partly owing to certain disagreements into the history of which it is unnecessary to enter, the financial arrangements between the Colonial Government and the local authorities have drifted into a state of confusion. This is more especially the case as between the Government and the Municipality of Port Louis. In 1921 the Government suspended the Municipality from the exercise of its functions in regard to the upkeep of streets, water supply, and the scavenging and sani- tary services of the town, and these functions have since then been discharged by the Public Works and Public Health Departments. The cost of the services for the current financial year is estimated as follows:-
Maintenance of roads and bridges Upkeep of waterworks Chlorination
Scavenging
Sanitary works and streams Watering of streets Night-soil service
Control of foodstuffs
Total
Rs.
30,000
24.000
15,000
73,000 12,000
3,500 82,000
150
239,650
The first three items appear under Public Works, Recurring Charges, the remainder under the Medical Head.
On the transfer of the services, the yearly Government contribu- tion to the Municipality of Rs.126,000 in heu of payment of quay dues, tenant and house taxes on Government property, and boat licences was withdrawn, and the Government also took over the revenue from water supply, but this claim was successfully resisted by the Municipality on the ground that it had paid the cost of installation and remained liable for the loan charges in respect of this expenditure. The fact that the Municipality was equally liable for the cost of maintaining the water supply appears to have been lost sight of in the discussion. The result of these financial arrangements is a budget of municipal expenditure which can only be described as grotesque. According to its printed Estimates for the year 1931, the revenues retained by the Municipality amount
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