CO129-376 - Governor Sir Lugard - 1911 [3-4] — Page 400

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4.

As the revenue raised by this tax was found to

be inadequate for the needs of the Colonial revenue, the Colonial Government enacted on 16th. March, 1911, that the rebate should

cease to be paid to His Majesty's Forces from let. January, 1911, and, moreover that the duties on liquor should be further consider- -ably increased.

5.

One result of this legislation is that the

price of beer in all canteens must be raised to 17 cents (the

equivalent of 3td.) per pint, and that the price of all other alcoholic liquors consumed by His Majesty's Forces is raised above that prevailing in 1909 by approximately 1/- (one shilling) per reputed quart bottle.

Another obvious result of the unforeseen

abolition of the rebate by enactment on 16th. March, with re-

-trospective effect from the 1st. January, 1911, is that regiment- -al funds have now to make good the expenditure incurred in grants to extra measing and recreation in anticipation of the receipt of the rebate for the quarter ending 31st. March, 1911. As regards

the future moreover, the soldier will have to pay about twice as

much per pint for his beer as he does at home, and the Officer

a much enhanced price forany liquor he consumes, this will certain- -ly not tend to make service in the Colony more popular.

6.

Should the increasing needs of the Colonial budget necessitate further increase of taxation in the future, the conditions of service of His Majesty's Forces in this Colony will

ar

be even more seriously affected for the worse than they now; in which connection I would point out that Officers are in a worse position financially than Civilians drawing their income in the Colony, as the former pay Income Tax to the Imperial Government in addition to local taxation, while latter are totally exempt,

From

this deduction from their earnings. Those officers who are not accommodated in Government quarters pay the ordinary colonial house tax as well as their Imperial income tax.

7.

Under these circumstances I submit that if the

principle is to be accepted that taxes for the purpose of raising

# See Jonc. 1 in Gove's. Leap. 127 of 10.4.11. tr.12038 -