Guinea

Finances Of New

Residents Enjoy Tax Remission

Seeking New Sources of Revenue

From Our Own Correspondent RABAUL, October 1.

THE outstanding event in New Guinea this month has been the announcement by the Adminis tration of a reduction of 7/6 per ton

in the copra export duty.

As already advised there has been an agitation for many months past for the total abolition of the tax in order to give relief to the planters.

Apparently, it has not been possible

to remove the tax altogether yet—

in this case, “half a loaf” is better than none, and the reduction has been received with great relief through out the Territory, and it is hoped that the remaining per ton will be re moved in the near future.

It speaks well for the financial posi tion of the Territory when relief of taxation to the extent of £24,000 can

be granted without, apparently, affect

ing the credit balance of our finances.

To a large extent this has been ren dered possible by the cessation of ca

pital expenditure on public works

which previously had been met out

of revenue.

It is probable, however, that new

taxation will have to be devised to compensate for the reduction in the copra tax and, in view of this, local

public associations have been discuss

ing possible new sources of revenue with the intention of submitting their proposals to the Government. The feasability of introducing income tax has been in the forefront of the dis cussions and, whilst it is generally conceded that this is the most equit able tax. the cost of establishing an Income Tax Department and the col lection of the tax in a small and widely scattered community is re garded by many as rendering the tax unprofitable. Nevertheless, some con sidered opinion holds that an income tax is feasible.

Another objection put forward to the income tax proposal is that it would be extremely difficult to collect

from the Asiatic community, owing to

the involved methods in which Chin

ese traders conduct their business. It is also questionable if an income tax would be legal in this Territory, and it is certain that, whilst the public have no representation or voice in the administration of the Territory, strong objection would be taken to the

introduction of the tax.

As an alternative to an income tax a poll tax has been suggested on all adult Europeans and Asiatics. Whilst such a tax would not be so equitable as an Income tax. yet the proposal appears to be worthy of consideration. With the recent great Influx of men to the goldfields our combined European and Asiatic adult population probably exceeds 5,000 , so that a poll tax of £4 or £6 per head would yield an appreciable sum.

At the present time a large proportion of resi dents escape any direct taxation, and a moderate poll tax payable half-yearly or quarterly, would not fall heavily on any class of resident. This tax would have the additional advantage of being easily collected and the Asiatics, many of whom derive handsome incomes but contribute very little towards revenue, would bear a share of the bur den of taxation.

It is understood that this proposal has been made to the Government, but the Administration do not appear to be favourably disposed towards its introduction. The poll tax certainly appears to be the best emergency method of making good loss of revenue bv remission of taxation on copra.

It has also been suggested that additional revenue could be secured bv special levies on profits of certain large foreign companies (i.e., companies that are controlled from without the Territory), who derive large profits from their trading in New Guinea. There are several com panies who have reaped rich harvests in this Territory for some years past, and a tax on their profits could not be regarded as an unfair im position.

A careful revision of our Custom Tariff would probably disclose many articles that are at pre sent admitted free of duty which could be taxed and a number of luxury lines which could bear a heavier rate of duty.

Other sources of revenue that might be investi gated with advantage are an Undeveloped Land Tax (including a tax on unearned increment) and an Absentee Planters’ Tax.

Generally speaking, this Territory has been ex ceedingly fortunate in the taxation imposed, but it would appear that the time is now ripe for a scientific investigation into the incidence of tax ation. Probably New Guinea is the only country in the world to-day that has actually decreased taxation during the present year, as against a universal increase in all other countries.

Co-incident with these discussions on taxation, the Administration has been urged to reduce ex penditure and practice economies, and in this connection it has been suggested that, as the cost of living has probably reduced by 10 per cent, during the current year, a reduction in the salaries of civil servants would be justified. An argument put forward in support of this is that salaries of public servants have been universally reduced in other countries but, as long as salaries can be maintained at the present rates without any increase in taxation on the general public, it would appear that there is no justification for this contention.

Whilst it is generally agreed that salaries should not be altered, it is felt that the Administration could effect certain economies within the service.

In this connection it is considered that the large Increase in the personnel of the European police officials during the past two years is entirely unwarranted, unnecessary and a great extrava gance.

Four years ago there were but two European police in Rabaul, to-day there are seventeen. Order and discipline in the town was just as good four years ago as it is to-day. No word is said against the present force. The only complaint is that it is unnecessary and that the Territory could save a considerable sum in expenditure by a sane re duction.

In regard to the conditions of service of the public service, the public feel that economies could be effected by a revision of the leave conditions.

In particular, it is felt that the long leave granted at the end of six years of service is too long; and that a total leave of six months would be ample.

Frequently, this long leave causes the recipient some concern as, in many cases, it is difficult for

a man with his family to carry on outside the Territory on his bare salary. Further, a long absence from his duties impairs an official’s efficiency, in that he gets out of touch with his duties and with the changes that have occur red during his absence. It is considered that a six months’ holiday should be ample to recup erate from continued residence In the Territory.

Turf Club Meeting.

The Rabaul Amateur Turf Club held their Sep tember meeting on the 26th instant. This proved to be by far the most successful meeting yet held, there being a record attendance of visitors and a record number of entries for the races. The weather was perfect, although the continued dry spell rendered the course dry and dusty. The principal race of the day, the New Guinea Cup. was won by the top weight, “Garbardene, ” owned by Mr. George Ellis. The winner was trained by Mr. S. O’Connor and ridden by Mr.

B, W, Costello.

Following the races a ball was held at Wuna wutung Hotel, which was very largely attended The new dance hall, erected by Mrs. Gilmore at considerable expense, was used for the first time.

The hall is tastefully decorated and is lit with multi-coloured electric lights, which enhance the general pleasing effect. The dance hall is quite the best in the Territory and is considered equal to any in Australia.

Motor Accident.

A distressing accident occurred on the night of the ball when cars owned by Mr. Gregory, the Assistant District Officer at Rabaul, and Mr. H.

K. Anthonsen, motor engineer, of Rabaul, collided in Casurina Avenue. Unfortunately, Mr. Anthon sen was severely injured, receiving head injuries and bad cuts on the face.