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PUBLIC RECORD OFFICE

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Reference :-

C.O. 882

5PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

C4

Belect Com- ittee, p. 7.

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system, but simply that the Governor should have the power and use the power at once to prevent exaction of taxes, when it is obvious that, whether owing to a mistake in the assessment or to abnormal seasons, their exaction will cause misery. In the p. A. to Report words of Mr. King, the senior Grain Commissioner, "remissions should be possible under circumstances * of peculiar hardship;" and, if the power to remit does not exist to a sufficient extent, the law should be altered accordingly. This seems to be more or less recommended by Mr. Moir when he says in his reply to the circular issued by the Select Committee, The power of the Governor in Executive Council "under section 11, 2nd proviso, might be enlarged,

40.

761,

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so as to enable him to consider any case of un-

" doubted hardship in connexion with the commu- tation settlement proved to his satisfaction, and "to make such order thereon as the circumstances

require."

A travelling inspector might possibly be a useful addition to the safeguards against over taxation.

It seems to me therefore-

(1.) That the paddy tax should be retained for the reasons given, which should be set out at length as a justification for the decision;

(2.) That such of the recommendations of the Select Committee, as do not affect the main prin- ciple of the 1878 Ordinance should be adopted; but (3.) That the system introduced by that Ordinance should he maintained, and the sliding scale rojected, on the ground that the Ordinance has not had a fair trial; and

(4.) That the Governor and his officers have or ought to have ample powers to prevent hardship erising in extraordinary times and under extra- ordinary circumstances.

Having stated the above as my own conclusion as to what is best, and while hoping that it will be accepted, I venture to suggest what should be done in case the Secretary of State considers that some further concession must be made to the opponenta of the grain taxes,

In that case--

(1.) 1 would adopt the recommendations of the Select Committee except the sliding scale, and of that scale I would adopt the exemption from taxa- tion of all lands producing less than fourfold, while rejecting the rest of the graduation.

(2.) I would inform the Governor that he is at liberty to state to the Council that the Secretary of State is prepared, though with great reluctance, to approve the very gradual introduction of a general land tax to take the place of both paddy tax and import duty; that he will (to quote Sir F. Dickson's words)"

obtain the services of an experienced "Indian settlement officer to direct settlement operations through the Government agents and "their assistants in lieu of the present Grain Commissioners; and that the tax will not be intro- duced until a careful revenue survey has been made and every possible precaution taken against causing . hardship by the change. But that before any step is taken there must be a definite expression of opinion by the Council on the subject, and it must

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be distinctly understood that the paddy tax will not be abolished without concurrently abolishing the import duty, and that the substituted taxation must not be found in addition to present taxes, which prospective liabilities have already mort- gaged.

March 1891.

C. P. L.

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CEYLON REVENUE, 1889.