CO882-(4-5) — Page 252

PUBLIC RECORD OFFICE

गय

Reference :-

CO

C.O. 882

5 PUBLIC RECORD OFFICE, LONDON

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

106

headmen and all concerned with these rents, that it has become absolutely necessary that the tax should be abolished, or that an entirely new machinery should be organised for its recovery, which, on the other hand, would of itself be so costly as to render the future imposition of the tax inexpedient.

The only argument that can be brought forward in favour of this tax is that it brings in a comparatively large amount of the revenue of the Northern Province at small cont in collection, and this, I must beg respectfully to submit, was the only argument in favour of its retention which prevented Mr. Dyke long ago recommending its abolition, as was evident to me from a conversation I had with him on the subject of this tax in 1863. The cost of collection at present nominally amounts only to 6 per cent, on the proceeds. How much fraud, however, is perpetrated by the headmen in obtaining remuneration by indirect means, and how much oppression is exercised by grasping renters on the helpless cultivators, are matters that should be carefully considered with reference to their demoralising effect, which must render good government impossible.

The copy papers marked B.,* which are copies of a few of many such returns in the office, will show how very much the crops are as a rule under-estimated by the beadmen, with the view of getting the rents sold at a low figure; and all attempts made hitherto to induce the headmen to give in something like fair estimates have failed.

The practice introduced recently of doubling and even quadrupling the estimates, and then calling on the headmen to pay up the amounts, has still further induced, and in fact obliged, the headmen to reduce their estimates till they have now become simply worthless.

There is in reality much difference between the tax on dry grain, as levied in the Jaffna district, and that on paddy, though at first sight they appear much the same, as being taxes of th on the produce.

Paddy is grown on large tracts of lands at one season of the year, and it is possible for the Government Agent, if he suspects any fraud, to personally check the estimates by inspection of the lands.

The tax is one that has been levied from time immemorial, and much is done by the Government in the interests of the paddy cultivators through the influence of the headmen, and the recent Irrigation Ordinances have been framed and passed solely in the interest of the paddy cultivators.

The tax can be commuted for. It is levied in the Jaffna district once a year only, on

■ crop of comparatively slow growth, concerning which full information can be obtained before the sale of a rent.

It is a tax on grain which forms the chief food of the wealthy and upper classes, and & comparatively small portion of the food of the lower classes.

Dry grain, on the contrary, is carried on in small patches of garden lands scattered over a village.

The cultivation is laborious, requiring constant irrigation from wells.

Nothing whatever is done by Government in the interest of the dry grain cultivators. It is utterly impossible for the Government Agent to exercise any efficient check on the estimates of the headmen, as the crops are grown quarterly, are scattered about all over the country in small patches of ground, and must be reaped immediately they are ripe, as any delay would cause serious loss to the cultivators, and the rents are sold four times in the year. In fact there is a constant sale of the dry grain rents going on throughout the year.

It is utterly impossible to introduce a system commutation with regard to this tax. as the lands sown for one crop are not sometimes sown for another crop of dry grain for some time.

I may mention that in order to prevent detection of the frauds recently brought to light regarding the estimates of Vallikamam West, it was brought to my notice that the cultivators had hurriedly reaped the crop, ploughed up, and resown the lands for another

crop.

In fact there is an organised system of fraud and extortion going on with regard to these rents which it is impossible for the Government Agent to check.

I must beg respectfully to submit that when, in the collection of a tax in itself wrong in principle, as I believe the dry grain tax of this district to be, so much fraud can be perpetrated in most cases with impunity, and which must have, as I have pointed out, a most demoralising effect, it becomes, as it appears to me, the moral duty of a Government uch as that of this Island professes to be, either to abolish that tax or to devise some means for its recovery which will render fraud on the part of those entrusted with its

• Not printed.

107

collection less possible or more easy of detection, and then it becomes a question whether, with reference to the amount yielded by it towards the general revenue, and the propor- tion of that amount which would be swallowed up in any new machinery proposed to be adopted for its recovery, its retention would be any longer expedient or necessary.

As regards the general revenue of the Island, the amount yielded by the dry grain tax of the peninsula and islands of the Northern Province is comparatively insignificant, whilst, on the other hand, it forms a fair proportion of the revenue of the Northern Province, and has hitherto been collected at nominally small cost to the Government; but, as I have endeavoured to show, with an amount of fraud on the part of those entrusted with its collection such as to render it necessary either to abolish it or to adopt some other measures for recovering it.

Any new machinery, however, that could be devised for its recovery would, in my opinion, be costly, and take up a large proportion of the amount recovered.

contend, therefore, that the tax should be abolished as-

(1) Being wrong in principle

(2) Demoralising in its tendency; and

(3) Yielding so small a proportion of the general revenue of the Island as to render its

retention on the ground of necessity unjustifiable.

But I must beg to point out that there are, as I believe, other sources of revenue open to us which would go far to make up any loss in the event of the abolition of the dry grain tax, and certainly make up any difference between the present yield of the tax and the additional cost that would have to be incurred in its collection if retained.

Tobacco, which is now grown so extensively in the peninsula of Jaffna as to make it have the appearance of an immense tobacco garden in the early part of the year, the cultivation of which is annually increasing, and is in some instances taking the place of dry grain and paddy, which yields handsome profits to all engaged in its cultivation and trade, and is consumed by, all classes of the people, and which must be looked on more in the light of a luxury than a necessary of life, now pays no tax whatever.

The amounts realised on account of the dry grain rents appear in statement A. Varago is there given separately. Exclusive of Varago, the average annual amount realised on account of the dry grain rent has amounted to 4,1781.

I cannot accept this, however, as a fair average of the worth of these rents, as the amounts realised during the last four years have been recovered in many instances in an arbitrary manner by forcing the headmen to pay up certain amounts.

I think 3,5001, can be accepted as the fair average value of the dry grain rents, exclusive of Varago.

From this must be deducted the cost of collection, six per cent., 2104, leaving a balance of 3,2901.

Up to the end of last year a nominal export duty of 4d. a cwt, was levied on tobacco. This duty was abolished, with other export duties, at the close of 1869.

The statement C." is a statement of the amount recovered as duty at 4d, a owt from 1858 to 1870, and the estimated value per cwt.

In 1869 the duty amounted to over 6001.

The total annual value of the tobacco crop is between 80,0007, and 100,000/ About half the quantity grown is exported to places beyond the seas, the other half is consumed in the Island.

I have made careful inquiries, and have been informed that tobacco could very well bear a duty of 2s. a cwt. without interfering with the trade. Two shillings (28.) a cwt. on the quantity exported would be about on the proportion of the crop exported, and

of the total crop, whilst dry grain now pays a tax of 1%.

I would beg to recommend an export duty of la. a cwt, being levied on tobacco exported beyond seas; such a tax, distributed as it would be over the cultivators, traders, and consumers, both elsewhere and in the Island, would scarcely be felt, and could be easily recovered without the evils attending the present renting system in connexion with the recovery of the dry grain tax.

4d. a cwt. in 1869 yielded 600%.

1869

and 1869

500%. each.

one shilling (18.) a cwt. may be surely expected to yield 1,500, which would be about equal to half of the net proceeds of the present dry grain tax.

• Not printed.

0 %