CO882-(1-2) — Page 6

PUBLIC RECORD OFFICE

'य'ग

Reference :-

C.O. 882

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PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE COPYRIGHT PHOTOGRAPH-NOT TO BE REPRODUCED PHOTOGRAPHIC-

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regards those provinces. It is true it may be repealed, but there considerations of policy come in.

Sir W. Colebrooke mentions several enact- ments (April 22, 1823, March 2, 1824, December 20, 1830), providing for the direct taxation of He recommends their being cocoa-nut lands. dispensed with, which has been done

point

of fact, but whether to the extent of a repeal of

the laws seems uncertain.

The state of the revenue law of Ceylon then, as far as is known here, appears to be this- that in the maritime provinces all lands are directly taxable in at least one-tenth of their produce, except cinnamon, coffee, and pepper, but none are so in practice except paddy-lands; and that in the Kandyan provinces no lands are directly taxable in law except paddy-lands, though in practice Chenas are occasionally taxed besides.

Thirdly. As to taxed paddy cultivation in both provinces. The Colonial Secretary seems not to have been aware to how great an extent the paddy-tax has been commuted to fixed pay. ments for a term of years. So generally has this in reality been done, that neither good faith nor policy admit at present of the change recommended by the report. The tax could not well be on a better footing than it is now. Compositions are becoming more and more numerous, and the continuance of the legal right to an actual division of the crop, where they do not exist, is a strong incentive to their extension and maintenance. Redemption of land-tax, which is permitted in Ceylon, would scem a most unwarrantable anticipation of future revenue.

Fourthly. As to lands other than paddy-lands in the maritime and Kandyan provinces respec tively.

How far should direct taxation be extended to them, or indirect be, or continue to be, sub- stituted for direct?

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To coincide in the one uniform and unquali- fied answer of the report to these questions is clearly impossible. There is little doubt of the general expediency of extending taxation to other lands than paddy, but in what way and to what extent, and to what kinds of those lands, must depend upon the circumstances of each case.

It is doubtful whether paddy-land once cul- tivated would be thrown out of cultivation by the imposition of any tax that did not absorb the whole rent. And it is not likely that this often takes place in Ceylon, where the Govern- ment demand seldom goes beyond one-tenth, while rent generally reaches to one-half of the gross produce. (Vide Road Committee of Co- lombo, 1842.) But a rent-charge falling exclu- sively or most heavily on paddy, must check the clearing of new grounds adapted to that cultivation. Also the vexatious character of the machinery through which the tax is some- times levied, must in such cases be a strong inducement to the agriculturist to prefer the raising of some kind of produce, not liable to

that shape of demand.

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So far, then, the fact of paddy being alone liable to the land-tax must operate as a dis- couragement to that important, perhaps in Ceylon the most important, branch of agricul- ture. With a view to remedy this evil, the present state of the finances does not admit, nor does the present moderate amount of paddy. taxation seem to require, any positive reduc- tion of it. Nor, does the state of the law and usage of the country admit of our equalising

the burden in the manner proposed by the report. The only course open to us appears to be, to impose the best equivalent we can on the several other kinds of cultivation as opportu-

nity may offer, and law and policy allow.

1. As to lands in the maritime provinces liable by law in one-tenth of their produce, but either uot liable in practice to taxation at all, or liable to indirect taxation only.

Gardens of toddy-trees appear to be at pre-

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