Copra Tax

Reduced to 7/6 per ton

More Relief For N.G.

Planters

IT was announced on September 22 that the Federal Cabinet had approved of a reduction of the Copra Export Tax in the Mandated Territory of New Guinea, from 15/- per ton to 7/6 per ton.

No further particulars are available.

It is assumed, however, that the tax will remain at the lower figure so long as the European quotation for copra is at an unprofitable level—which, with the Australian exchange at 30 per cent., is anything under £12 per ton c.i.f.

There has been no indication as yet of how the New Guinea Administration proposes to compensate itself for this loss of revenue. The tax was formerly 25/- per ton; but during the past year, there were two reductions of 5/each. The third fall, of 7/6 per ton, represents to the Administration a loss of revenue equal to 17/6 per ton on all copra exported—a very important consideration in the present difficult economic conditions.

It became known during the past month that the Administration officials had suggested to Canberra the refund of the export duty in necessitous cases only. The purpose of the plan, no doubt, was praiseworthy; but when those primarily concerned got down to an examination of the methods to be employed, many serious objections arose. Who was to decide which were necessitous cases? Was the provident planter, who had built up a reserve for a rainy day, to be penalised by having to pay the tax while the improvident planter, who could be classed as “necessitous,” was given special relief? However, the Canberra authorities soon decided that a discriminatory application of this form of relief was quite impracticable and the plan was abandoned.

Both the Planters and Traders’ Association of New Guinea, and the Returned Soldiers’ organisation, made very strong representations to the Federal Government. The matter was handled personally by Mr. Chifley, the Minister who assists the Prime Minister by attending to Pacific Islands affairs. Mr. Chifley has, during his period of office, dealt most sympathetically with requests from the Pacific Islands arising out of the present difficult economic conditions; and has displayed a comprehensive knowledge of Pacific territories’ requirements generally. His prompt decision in re gard to the Export Tax will be much appreciated. ... ===