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PUBLIC RECORD OFFICE

Reference :-~

C.O. 882

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5 PUBLIC RECORD OFFICE, LONDON

10.

Peel &

el. 7, p. 2.

Appendix.

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required." Mr. Murray thinks "this source of "revenue might easily be doubled." Mr. Jovers sees no objection to a moderate increase. Mr. Fisher thinks the excise might be doubled without being felt, and Mr. Wace would be ready to increase it.

On the other hand, Mr. Dawson would leave it alone. Mr. Twynam thinks that “salt being sa “article of food and a necessary of life, any attempt "to impose additional taxation on it in order to do away with the tax on locally grown paddy would, believe, give rise to agitation similar to that brought against the paddy tax."

Mr. Templer, who was for a long time at Patta- lam, the chief salt-bearing station, advises "extreme “caution in dealing with the subject."

Among members of the Executive Council, Mr. Saunders sees "no objection to an increase of the "salt duties, though I think at present it would "not be expedient to double the Government price of salt," Mr. O'Brien would keep any increase in reserve for future needs, while the Attorney-General thinks that “if absolutely indispensable, a slight " increase of the salt tax may be sanctioned."

Native opinion is rather ominously against in- creasing this tax. Ten out of the twelve Mudal- yars in the Western Province were opposed to revising the salt duties under any circumstances; and in the late debate on the grain tax Dr. Anthonisz pleaded strongly for a reduction of the tax on salt as well as of that on rice.

In India the whole taxation (including land revenue) is about 2) rupees, or (say) 40d. per head. Salt contributes about one-seventh of the taxation, and it contributes not quite one-eleventh of the gross revenue.

In Ceylon the amount derived from taxation (according to the annexed statement) was in 1889 nearly Rs. 10,000,000 or, taking the population at 3,000,000, about 8 rupees per head. According to the Governor the salt revenue averages about Rs. 850,000 per annum, or between one-eleventh and one-twelfth of the taxation, and one-eighteenth of the gross revenue.

In India the consumption of salt is about 11 lbs. per head; the rate of the salt tax for nearly all India is 2 rupees per maund (82 lbs.), to which amount it was raised in 1888; therefore the rate of the tax at present is about one-third of a rupee, or 6d. per head. In Ceylon it is about 44d. per head. But the Indian salt tax was only raised in 1888 from 2 rupees to 23 rupees "in order to meet * financial difficulties caused by the fall in the gold price of silver," and the Government are pledged to reduce it again as soon as possible. At the old limit of 2 rupees per maund, the Indian and Ceylon peasant paid about the same; there is therefore 30 years, very little argument to be derived from Indian

experience for raising the tax in Ceylon.

the metno-

adam on some

the results of

Dan Adminj-

tion during

19-13. -8718/80.

par. 16.

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The Governor would propose to raise it to a little over 6d. per head, which he says he believes is lower than the rate ruling in India. It would seem from the above to be on the contrary rather higher than the Indian rate, which rate has been only tom- porarily fixed to meet a special contingency. This

soman to point to the conclusion thas in Clegion also an increase in the salt tax should only be adopted na a temporary measure in the osse of emergency and not be permanently sanctioned.

Mr. Templer, whose opinion, in view of his long service in the salt-bearing district, is entitled to special weight, eays that the fish-ouring industry Enol. 7, would be seriously affected by doubling the retail price of salt, though he does not think the general Consumer would be much affected. He also thinks that such a rise would cause difficulty with the manufacturers engaged in producing the salt.

Mr. Jevers saya, “A result of a rise of price in salt p. 16. "would be to increase the price of salt fish which "enters so largely into all Native diet. This is "much to be deprecated. But special rates for the * issue of salt for fish-ouring (as recommended by "the late Mr. Ravenscroft) might be granted under

proper restrictions.”

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Dr. Anthonias in his speech in the debate urges End. §. that "salt is an important necessary of life, and therefore ought to be obeaper than it is for the masses of the people of the country. The larger portion of the population being Buddhists, and "their chief animal food being fish, it is necesSSIY “that it should be properly preserved to prevent " its becoming an unwholesome diet."

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Fish-ouring establishments were established by Sue Sea the late Mr. Ravenscroft, and the industry appears Papers.

to be a promising one. It would seem, too, that and 10 the fish curers are already as a matter of fact given the advantage of reduced rates of salt.

If the tax is raised, special care should be taken not to discourage these men. The use of bad fish

is just the kind of cause which would tend to spread parangi and such like diseases. On the other hand, it is most desirable to supplement the rice diet of the Natives of Ceylon with a plentiful supply of cheap and good fish.

The proposal to make an increase in the salt tax a partial substitute for the grain tax seems to be open to two objections: (1) it is simply substituting one tax on necessaries for another tax on nesSE- saries; (2) such an increase in a tax on necessaries is a proposal which should be regarded, as it has been regarded in India, and as Mr. O'Brien would regard it in Ceylon, viz., as a temporary expedient, not as a permanent measure of revenue.

11. Export duties are another substitute for the Exporté grain taxes which has been proposed.

Mr. Saunders, whose opinion is that "the Go- 2788, "vernment should retain the grain tax as long as

C

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they can do so with the approval of the people,”

and who does not believe "that the gmin tax is regarded as an objectionable tax by the bulk of "the people who pay it," considers that, if the Government were forced to abolish it, a land tax could be "indirectly but most fairly and sheaply "collected by a very light export duty on laad products." In the opinion of the Governor “ this recommendation marits consideration and in- quiry, and it should be kept in view in esse

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• It may be noted that there is an import duty on dried or enlted dish of 40 conis per cwb.

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