CO882-(3-4) — Page 377

Lightness of

taxation in Ceylon.

(Confidential.)

76

Sub-Enclosure in Enclosure No. 9.

PARAGRAPH from the DRAFT REPORT of the GRAIN TAX COMMISSION, rejected from the FINAL REPORT by a Majority of 5 to 4.

In considering the subject generally we have been instructed that the lightness of the taxation of Ceylon should be borne in mind, and as the result of the inquiries we have made we find that in Ceylon the cultivator pays, as a rule, one-tenth of the gross produce of his field. In India, on the opposite coast, within 12 hours' sail of Ceylon, be pays one-half of the net produce, which is equivalent to 25 or 30 per cent. of the gross produce. It is one tenth in Ceylon as against one fourth or more in Madras, The focal Governments in India have furnished the Commission with very full and valuable information respecting their land settlements, which vary with the tenures and circum- stances of the different parts of India, and as might be expected from the geographical position of Ceylon, the identity in race of the people of Southern India and North Ceylon, and the early history of the fiscal administration of Ceylon, which, when first acquired by Great Britain, was governed as a dependency of Madras, the system which is the best for the purpose of this comparison is that now being worked out in the neighbouring presidency of Madras, and the district of Tinnevelly has been selected as the example to take, on account of its proximity to Ceylon, and as the latest improve ments in settlement have been worked out in that district. The system is thus explained by Mr. R. K. Puckle, the Revenue Settlement Commissioner,-

"The villages were formed into groups with reference to their several advantages of irrigation, climate, soil, situation, &c., and a series of experiments was made to ascertain the yield of the staple grain. When this was determined, a table was framed showing the yield of each class of soil, and this yield was converted into money by an average struck on twenty years' market prices with some abatement for t ders' profits and for the distance that the grain usually had to be carried. From the value of the gross produce, thus determined, the cost of cultivation was deducted, and the remainder, or net value of the produce, was then divided, and one half taken as the Government demand on the land."

The result is an average rate of assessment on wet lands of 172, 74d. per acre, and a range from 21. to fr. an acre on wet lands, and from 78. to 6d. an acre on dry lands. No less than 7 per cent. of the wet lands has been assessed at 21. The unbusked rice has been valued at la. 5d. a bushel. Turning now to Ceylon we have an assessment on wet lands ranging from 148. 5d. to 11d. an acre, with an average varying in the several provinces from 6. 3d. to la. 11d. based on an average price of a bushel of unhusked rice also varying in the several provinces from 28. 8d. to 10d. There is no assessment in Ceylon on dry lands. The range of production appears to be the same in Tianevelly as in Ceylon, varying from a rare minimum of sixfold to a full crop maximum of twenty- one fold, with a few highly favoured lands capable of producing still heavier crops. The mean ratio of produce may be fairly taken in both cases at twelve fald. Taking the incidence of taxation on population, it has been calculated that the land revenue in Ceylon is equal to 10d. per head against 28. in Bengal, 38. 3d in Madras, and 4r. 5d. in Bombay. The ordinary revenue derived from taxation has been shown shove to be 865,000%, which gives for a probable population of 3,000,000 a rate per head of 5s. 6d., and if the local revenue amounting to 189,0001. be added, the rate is 7a, a head.

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LONDON:

Printed by Gmouss 3. Eras and Willian BrorZE WOODE,

Primers to the Queen's most Excellent Majesty.

For Her Majesty's Stationery Ol«.

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PUBLIC RECORD OFFICE

Reference:

C.O. 882

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