CO129-597-3 Estimates 1950 22-2-1949 - 3-11-1950 — Page 188

conditions in the Far East generally, they have boon framed on a conservativo though not on a pessimistic basis. In spite of special efforts to reduce expenditure, it was not found possible owing to the heavy dofonco and security commitments to balance the budget on the cxisting basis of taxation. It is therefore proposed to raise additional revenue to the extent of 1,600,000 by the introduction of the following measuros :

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(a) It is proposed to double the present duty of

24 cents a gallon on table waters which is cquivalent to a tax of 4 cents a bottle as compared with the present rate of 2 cents. This measure is expected to yield 500,000, but with the keen competition now existing botwoon manufacturers of acrated waters, it is hoped that t is extra 2 cents por bottle will not bo passed on to the consumer.

(b) Local postal rates still romain at their pro-war lovel, and it is generally admitted that they are very low indeed. It is proposed to increase the basic local letter rate from 5 to 10 cents, and that for postcards from 2 to 5 conts. This is expected to yield additional revenue to tho extent of $350,000.

(c) It is proposed to raise the stamp duty on

cheques and receipts from 10 to 15 cents, and also to recover some portion of the administra- tive costs involved by requiring all applications for import and export licences in future to bear a 1 stamp. Those measures are expected to produce $650,000.

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(a) It is proposed to introduce a licence for

concerns engaged in the manufacture of finished products from raw materials or in the repair of finished products. The fee would be on a graduated scale according to the number of workers employed or floor space occupied. The yield is expected to be just under $100,000 and this assumes fees of $100, $150 and $200.

Duties.

The estimate of $34,250,000 is $5,800,000 less than the original estimate for 1948-49, and $4,550,000 lower than the revised estimate. As has been pointed out earlier in this memorandum, there was a serious drop in receipts from tobacco duty during 1948-49, and the estimate for 1949-50 assumes that these will be maintained at about their present level. Allowance has been made for increased receipts from duties on table waters as a result of the proposed raising of the rate of duty. In the case of other duties the estimates are based on receipts during the current year.

Assessed Taxes.

The estimate of $15,516,300 is $4,501,300