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PUBLIC

PECORD OFFICE

Reference -

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C.O.882/12

PUBLIC RECORD OFFICE, LONDON

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

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Registration fees.

24. Of the total estimated revenue of Rs.700,000 from registra- tion fees, Rs.450,000 is derived from Succession Duty. The scale of this duty was revised in the year 1930 when the rates on the larger estates were considerably increased and additional steps were introduced into the graduation. We do not recommend that any further change should be made. The rates of duty are in our opinion sufficiently high and properly graduated, and we would deprecate any increases which might have the effect of forcing the realization of a larger proportion of the assets at a time like the present, when the amount realized on sale would tend to fall below the normal valuation of the property. The other registra tion duties are also quite adequate in amount and we are not prepared to recommend that they should be increased.

Taxes on vehicles and animals.

We do not see any ground for an increase in these duties which are intended to contribute to the cost of maintenance and upkeep of the roads of the island, and together with the duty on motor spirit produce much more than a sufficient yield for that purpose. Except such as apply to private motor cars and cycles these taxes are a direct charge upon industry, and we do not regard them as a source to which we should look for additional revenue in a time of trade depression. The amounts of the taxes on private cars and cycles stand at reasonable figures and we do not consider that an increase would be justified.

House tax.

25. It remains to consider the house tax. As has already been explained this tax applies only to the rural districts of the Colony, its place being taken by a similar local rate in the townships and in Port Louis. It is leviable at a fixed rate of R.1 per annum on every habitable room of any building assessed at a capital value of Rs.500 or less, but is subject to a maximum of Rs.3 for every such building. On buildings over Rs.500 in value it is charged at a rate of 1 per cent. of the capital value. The rate in the townships is subject to a legal maximum of 1 per cent. on all buildings and other real property and is actually charged at that maximum. There is no fixed rate for properties of low value up to Rs.500. The rate in the Municipality of Port Louis is subject to the legal maximum of 2 per cent. and is graduated according to the value of the property at rates ranging from per cent. on properties up to Rs.6.000 in value to 1 per cent. on properties exceeding a capital value of Rs.20,000.

The rural house tax was introduced in 1928 with effect from January, 1929. It was intended to be in substitution for the export tax on sugar which had been reduced from R.1 per 100

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kilos to 50 cents per 100 kilos and at the date of the proposed sub- stitution was yielding a revenue of Rs.1,200,000. According to the original intention the tax was to be leviable not merely on build- ings but on all immovable property and was to be accompanied by a tenant tax on rent, similar to the tenant tax in the town- ships. The estimated total yield of both taxes was Rs.1,000,000, but in the course of the discussion of the Bill in Council the tenant tax was dropped on the ground that the amount to be raised was disproportionate to the cost of the collection, and the house tax was passed in a form which restricted it to buildings only. On this basis the estimated yield was fixed at Rs.700,000, but on the valuation being made it was found that this estimate was greatly excessive, and the actual amount raised for the first full year of collection (1929) was only Rs.495,604. For the year 1930 the estimate was reduced to Rs.400,000 of which only Rs.193,586 had been collected by the 30th July, 1931, i.e., one month after the end of the year, the time for payment having been extended from the due date (31st March, 1930) until March, 1931, and subse- The date of payment of the quently to the 15th October, 1931. 1931 tax has also been extended from the 31st March, 1931, until the 15th October, 1931, and at the time of writing (17th October, 1931) the arrears outstanding are:-

Rs.

1929

1930

1931

The arrears for the year 1929 are made up as follows:-

22,092 107,066 203,042

- No. of

Arrears

On properties up to Rs.500 in value On properties from Rs.500-1,000 On properties from Rs.1,000-2,000 On properties from Rs.2,000-3,000-, On properties from Rs.3,000 4,000 On properties from Rs.4,000-5,000 On properties from Rs.5,000-6,000 On properties over Rs.6,000

properties.

4,790

of tax.

Rs.

9,183

380

2,660

183

2,496

88

2,177

53

1,945

23

1,055

10 22

571

1,985

As would naturally be expected the bulk of the arrears relate to properties below Rs.1,000 in value. The total number of assess- ments to house tax in the rural districts is 54,097 of which no less than 47,090 relate to properties of Rs.1,000 or less in value, and these small properties make up Rs.7,797,650 of the total valua- tion amounting to Rs.36,548,885. Owing to the different basis of charge in the case of properties up to Rs.500 in value, the tax actually charged thereon works out on an average at more than 1 per cent. on the amount of the total valuation, and the amount payable on properties up to Rs.1,000 accounts for Rs.116.469 out