CO129-591-7 Estimates for 1946-1947 12-12-1945 - 14-3-1947 — Page 149

cost of the Military Administration for the 0190

month of April, 1946.

the suggest

5

13

marks

ARC

of comics and ancê

may be

It is appreciated that there little scope

for reduction in expenditure in view of the urgent

need for rehabilitation.

It will accordingly be

necessary to consider to what extent (a) revenue can

be increased; (b) expenditure can be financed by means

of loans.

6.

Increase in revenue. It is necessary that

the revenue should be increased to the greatest possible

extent not only in order to achieve financial solvency

but also to combat inflation:

(a)

assu

Income Tax. On the understanging that it

would be difficult to introduce an

is considered impossible to introduce the

unmediately. tax/and

normal forms of Colonial income tax/and that

instead the various forms of war taxlar mone

eeeeptable to the local trading communities

and achieve much-the-same result, These,

which cand li be collectable after the

and

of the war,

taxes aro, property báz, salaries tax, profits

tax, loan and mortgage interest tax. These-

taxes were imposed for the duration of the war-

of assume that ingent considvalion

and it will accordingly be necessary to rO-

ishing given is the introduction or other

A

of

introduce similar forms of tax at the earliest

taxes as an interim measure such as the varions

possible date and urgent eonsideration should

forms of won luxe which wore impored

be given to this question and also to the

during

the war bugcensed to be collectible. you will doubtless

question of the extent to which the previous

also be considering to what extins- previous zoter

Pates can be increased. In this connection

of cause can be increased.

Zeeve Labble consider the desirability

of applying to the Government of Ceylon for an

officer or officers with experience of Income-

Ter in the Island as the loan of such officers —

before the war tergo

apparently proved very satiams

on

Consideration should also be given to the possibility

increasing the duties on liquor and/tobacco, both of

lich duties have proved to be great sources of revenue in

Additional duties on luxury goods should be

.K.